Foreclosure Freeze Chills Home Buying

The foreclosure freeze has put a deep chill on consumer confidence, especially when it comes to buying distressed properties. A new survey released by Campbell/Inside Mortgage Finance shows that interest in foreclosed properties and average prices for them dropped last month. HousingWire has the full report on why already gun-shy homebuyers are less likely to buy REO properties.

The ongoing controversy surrounding foreclosures is taking its toll as homebuyers refused to look at distressed properties in October, and foreclosure sales suffered from delays, according to the latest Campbell/Inside Mortgage Finance Monthly Survey.

Both the share of home purchases involving distressed properties and average prices for foreclosed properties fell last month, the survey found.