US president Barack Obama has said there will be more foreclosures to come in the next few months as the country continues to suffer from the recession.

The president claimed that initiatives to bolster the economy are starting to work, pointing to some positive indicators as "glimmers of hope".

However, he added: "The severity of this recession will cause more job loss, more foreclosures and more pain before it ends."

Those keen on investing in property in the USA may wish to buy up foreclosed homes at bargain prices while there is still a good supply of these.

Mr Obama’s words were echoed by Federal Reserve chairman Ben Bernanke, who remarked that there are signs of the downturn "levelling out".

One recent sign that the US property market is picking up came in figures for pending sales in February compiled by the National Association of Realtors.

These revealed a jump in its index of 2.1 per cent from 80.4 to 82.1, indicating a rise in activity.

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