[quote=danthedart]You really think logistics is the problem? I think its all the foreclosure moratoriums. In summer 2008 they were cranking out REOs at a fairly brisk pace or at least MUCH faster than they’re doing it now. This makes me think:
1) They did not have a premeditated plan before the bust to hold back foreclosures. They may have come up with this plan in the last 6 months, but not before last summer.
2) Logistics are not playing a part in getting the REOs on the market. They were able to do it logistically in summer 2008, they should be able to logistically do it now. [/quote]
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Agree with this, dan.
What I think the PTB is missing is how human psychology is going to intersect with their plans.
I fully believe the foreclosures are being held off because of the moratoriums and because the lenders (and govt) are trying to work out the loans. Once it becomes obvious that the govt is writing down principal amounts (hearing anecdotal rumors this is becoming more common???) or refinancing for 30 years at a very low fixed rate (not available on the open market)…well, everyone is going to want in on the action.
When your neighbor is getting a principal write-down and/or below-market interest rate, you’d be a chump to keep paying your mortgage. Lenders are telling people to stop making payments so they can rework the loans. Someone here posted about a HUD counselor suggesting he short-sell the house back to himself through a third party!
Once the govt started painting FBs as “victims” worthy of bailouts, they opened the floodgates.
IMHO, we will begin to see record-breaking delinquencies and defaults in the next couple of years by those who CAN afford to pay, but refuse to be chumps while deadbeats get all the goodies.
