Banks are holding on to foreclosed properties, releasing them slowly, so as to start a bidding war. So far its working. But as interest rates climb (trust me, they will) there will be fewer positive cash flow properties on the market for investors, as well as fewer first timers who qualify for loans. That will reduce the demand later this year, and along with even higher unemployment numbers, the banks will once again be in a pickle…either they will dump the properties, or beg Obama for more assistance.
