I’ve been watching ‘short sale’ claims for months. Guess what, the banks aren’t approving anything that basically doesn’t cover their loan.
What the banks are doing is delaying acknowledgement that the foreclosure wave is going to be big, and isn’t going to be just “sub-prime”. They’re jockeying for another quarter or two, maybe three of good stock prices before their book value and reserve gets crushed by having a load of REOs.
Right now, the media is blathering about sub-prime. Joe Sixpack is sitting at home thinking that isn’t him. When the foreclosures start roiling through all the neighborhoods, everybody will wake up and smell the coffee that sub-prime in reality is nextdoor, not just the ex-Ghetto.
