Short Sales and negative equity will continue for a couple more years

This staggering 50 to 1 ratio of 90 days or more delinquent properties and those currently in foreclosure vs. distressed sales is the latest estimate of Lender Processing Services. The mortgage and real estate technology company compiles a monthly mortgage monitor report.

 LPS reports that more than a third of distressed borrowers in foreclosures haven't made a payment in more than TWO YEARS!

LPS says foreclosure sales are actually declining, with huge drops of 79% in New York and 75% in New Jersey, for example.

"Negative equity also remains a concern, with nearly 30% of current loans in a negative equity position," according to LPS. "The equity impact on new seriously delinquent loans is significant, with loans significantly underwater defaulting up to 10 times as much as loans with equity."