Housing market expert says it may take 3 years to clear foreclosure inventory

The housing market's recovery continues to trudge along because of the large number of bank-owned homes and those in the process of foreclosure accounting for a large percentage of overall sales, says James Saccacio, chief executive officer of RealtyTrac.

Saccacio says the high number of these sales are helping to keep home values from falling, but at the cost of faster growth for the market.

"At the first quarter foreclosure sales pace, it would take exactly three years to clear the current inventory of 1.9 million properties already on the banks’ books, or in foreclosure," he said.

A number of families are forced into foreclosure because they no longer have the financial means to stay current with their mortgage payments. While many may hope to refinance their home loan, some do not have a strong enough credit score to qualify for a lower interest rate.

Rather than settle for losing their homes, some homeowners may be able to get a quick credit fix by reviewing their credit report for mistakes or items that were not reported in compliance with federal guidelines. The latter can sometimes be hard to spot, which is why some individuals will work with a credit repair attorney to help them find problematic or questionable items that can be challenged.

Removing these negative marks may help improve a credit score, enabling a homeowner to obtain a more reasonable interest rate on his or her mortgage.