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New York

Demand for foreclosed properties causes nationwide delay in sales

The Department of Housing and Urban Development has delayed the sale of hundreds of foreclosed properties, upsetting residential real estate agents desperate for their deals to close, the Wall Street Journal reported.

High demand for foreclosed properties caused HUD to run out of money needed to pay lawyers or others who manage the sales of foreclosed properties.

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Over 540 properties in New England have been affected, and HUD is still unsure how many sales have been delayed nationally.

At a press conference yesterday, Lawrence Yun, chief economist for the National Association of Realtors, called the delays “a nonsensical situation.”

To deal with the delays, the department has extended the deadline for some sales at no additional cost to the buyer, according to an agency official. The Journal reported that closings have resumed in Massachusetts and delays should only be temporary in other states. [WSJ]

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ForeclosuresLawrence YunNational Association Of RealtorsU.S. Department Of Housing And Urban Development