[quote=Arraya]Which would be a train because unleashing 7 million homes to the market, >40K in SD alone would crush prices and trigger more defaults and deflationary pressure.[/quote]
Had foreclosures been pursued timely starting over three years ago, we would have been much further along in a recovery. Because they weren’t, we now have a lot of squatters who aren’t going anywhere until they are evicted.
Even the defaults filed today are in different stages. I don’t see all the properties being marketed at once. Once a lender acquires a property, they still have to take time to ready it for sale. This should take under a month.
Isn’t the REO inventory that’s out there moving fast, often with multiple bids to choose from?
There might be some initial dip in values when all the squatters are sent packing in the same 3-6 mo. time period, but then the resulting REO’s will be quickly snapped up and we can get back to a “regular” market.
I just glanced at the Amended AB1639. It states, in pertinent part: “The bill would also provide that the timelines set forth in the provision governing the exercise of the power of sale, as specified, would be suspended until the completion of the program, as specified.”
Of course, this only applies if the TRUSTOR MEETS WITH HIS LENDER, SIGNS UP FOR THE PROGRAM, begins making payments equaling 50% of his mtg. pymts. AND provides ALL THE FINANCIALS THE BANK IS ASKING FOR with the 15-DAY TIME ALOTTED. This doesn’t allow for too much delay on the part of the delinquent borrower. The lender can reactivate the NOD during ANY point where the trustor falls down on his end of the bargain.
I don’t see this new program as being a HUGE success. It’s already been tried under various other acronyms but w/o the 50% pymt. requirement and the NOD/NOS hanging in the balance.
