1. Banks, bank subsidiaries, and sub-components of a bank or financial institution is only allowed to hold REO properties for 60 days.
2. Banks and financial institutions must exercise their foreclosure option in a timely manner. Forecloure proceedings need to be started with 120 days of past due. Foreclosure process must be completed, unless brought current within 6 months of beginning the process or past due balance is forgiven.
3. Banks are not allowed to transfer REOs to a subsidiary and need to liquidate them in private market transactions.
The faster we liquidate the better. More debt is not the solution. And if the banks can’t survive, then they need to be out of business.
