"Unemployment, not just lack of equity, is driving foreclosures, Rick Sharga of RealtyTrac, the leading source of data on foreclosures, told a gathering of real estate editors. Processing of so many foreclosed properties has slowed down and the so-called “shadow inventory” has grow so large that it will take until 2013 to work them through the system, he said."
"The shadow inventory grew dramatically during 2009 as lenders became overwhelmed with the sheer volume of defaults. Of the three and a half million foreclosures last year, only about 20 percent were listed for sale. The balance is still being processed and will come onto market this year and next. It will take three years for homes in foreclosure this year to be sold."
“The recovery will be a long and painful process,” Sharga said." (Real Estate Economy Watch)