The latest study from the Mortgage Bankers Association (MBA), entitled, "The Great Recession and Attitudes Toward Homebuying," revealed some key findings about today's buyers.

The study found that almost 80 percent of homebuyers still think that now is a good time to buy. Additionally it found that over the next five quarters this positive sentiment should remain near current high levels.

These results are a departure from home buying and seller sentiment trends over the last two decades. Previously, seller sentiment has been stronger than buyer.

"Despite high unemployment and slow economic growth, the bulk of American households believe that now is a good time to buy a home," said Gary V. Engelhardt, Professor at Syracuse University.

He continued that "positive sentiment towards home-buying is strong particularly among young, educated, white and Hispanic households, and is attributable to low house prices and low mortgage interest rates. In fact, the pattern of home-buying sentiment during the current recession looks very similar to that of past recessions. Homebuyer sentiment falls as the unemployment rate increases, and improves as job growth returns and housing becomes more affordable."

While the majority of homebuyers remain positive about buying, today's sellers are on the opposite end of the spectrum.

The study found that the "negative home-selling sentiment is strongly related to difficulty in finding buyers at desired sales prices, as well as the large overhang of mortgages past due or on foreclosure."

Home prices have dipped across much of the country and are now near 2003 levels, meaning many of these sellers are finding they owe more than their home is worth or are facing having to sell with no equity gain. These sellers are finding it difficult to reconcile their expectations with the reality of today's market.

The recession of 2009 has had far-reaching affects on unemployment, home prices, and the economy.

"Since 2005, seller sentiment has dropped precipitously, to around 7 percent currently, even while home-buying sentiment remains high," continued Englehardt.

It is understandable that sellers are having a hard time. Distressed sales have made up nearly a third of all sales in recent months. And that glut of foreclosed homes is still unwinding and should be expected to remain high in the coming year. Why is this?

CNN Money reports that many delinquent homeowners may have been able to find loopholes and administrative leniency that has allowed them to stay in their homes for up to three years without having made payments. But this piper must be paid and these homes, too, will end up on the market.

CNN reports that some of the tactics owners are using are: challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.

They report that the average time nationally to process a foreclosure is 674 days, or just under two years. Many states are seeing much longer times, with Florida taking the cake at 1,027 days average.

"While some borrowers are looking for ways to make good with lenders and get their homes back, many aren't paying a dime. Nearly 40% of homeowners in default have not made a payment in at least two years."

This is running ruin on many sellers neighborhoods, as delayed foreclosures drag out recessional issues on home prices.

Published: January 2, 2012

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Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide.