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Inevitable and the inevitable being a short sale, or a foreclosure. >> those are the real estate business say the evidence shows the banks are right now just working through a large backlog of foreclosures, which is why we saw the numbers change. we could see a spike in foreclosure numbers once again. according to a joint report released this week by the office of the comptroller of the currency and the office of thrift supervision, the redefault rate of loans modified in the first quarter of 2009 was 51.5%. >> last year we saw the number of households receiving a foreclosure notice jump from ...

Loans that are delinquent. >> there be record-breaking numbers of foreclosures and the rate of redefaults was a whopping 51.5%. >> for all those people that are here and maybe they had a loan modification, maybe it took a little bit of the pressure off. however, there is still downward on salaries and wages. it's not like all of a sudden there was a big bag of money dropped. it's a struggle to meet the modified loans. >> bottom line many homeowners are being forced to sell under duress. good deals for buyers and part of the recovery as we've been hearing in order for the economy to bounce back...

With the analogy of the pig and the python. the banks are trying to get what they swallowed a year ago processed and back in the marketplace. but there is a bigger pig yet to be swallowed, the 5 million homeowners that are delinquent. >> reporter: experts predict record numbers of foreclosures to be sent out this year. more than half of the homeowners will default within a year they say. rate of default last year on the modified loan was whopping 51.5%. >> so all the people that are here and maybe they had a loan modification, maybe it took a little pressure off. but there is still downward pr...

Estate business is that banks are working through a large backlog and we could see a spike of foreclosure numbers soon. according to a report released this week by the office of controller, the re-default loans modified in first quarter, 51.5%. >> last year we saw the number zbrunl to 2.8 million. we're forecasting 3.1, to 3.2 million receiving a foreclosure notice which would set another record. it's likely we will exceed that again in 2011. >> you mentioned that static, more than half of borders that hold on to their properties average will default again within one year. >> gregg: all right....

Compared to the previous month. while it is always good to see foreclosures go down, there is a bit of a black cloud nearby. this one month figure really doesn't speak to the rough days expected to come. that's according to experts who say the evidence shows that banks are just working through a large backlog of foreclosures. >> like the analogy of a pig and a python. the banks are currently trying to clean up what they swallowed a year ago, trying to get all of those properties processed and back into the marketplace. but there is a much bigger pig yet to be swallowed and that is the 5 millio...