UR I am not entirely sure why banks would hold things back. I think it is a combo of understaffed departments, and or slow to no motivation to release marked down assets in light of the fact that they will be repurchased via the government private/public programs. As you know the foreclosure process has been effectively stalled or dragged out by various legislative actions over the past 2 years. The lines between government and Wall St are so blurred now that it is laughable.

As far as I am concerned it is nothing but a big stall. I am sure you know of people who haven’t paid a dime on the mortgage for months, I know of someone who is now a year into free home living, and they have not even received a NOD yet.

The bottom line is I cannot tell you why things are the way they are. I can speculate, but that is just me guessing. All I know is that it does not make sense at all and it feels like some serious artificial pincers are in place.

As you said, within all this confusion are many a buyer who can buy now, who can afford a home now, and who are buying now. I would also add that CLEARLY todays buyer is MUCH MORE educated with realistic expectations. Not any more of the pie in the sky types we had just a few years back. Overall this is a very good sign.

As said by others, yes to lack of capacity but to me that is not the entire reason. I just do not see it. Perhaps lack of motivation to resolve the lack of capacity is playing a big role.

It is not like this is a surprise to the banks. Geez it is spring of 09 already!