[quote=SD Realtor]JP what you are seeing is the DIRECT result of the several policies that are in place. We have always seen posts saying that these policies will have no effect, that they will just amount to being seperate drops in the bucket.
We can only hope that these properties do make it to the market. However if they can dribble out, and be spread out over several years then the government will have been successful in controlling the inventory within the housing market. Another big question is what will the GSEs do. Arraya made a very good point.
Yes this may also mean that people who overextended themselves will get rewarded.
The problem is and has always been an egregious underestimation of what the forces of Wall St can do. All we can do is hope that they are overwhelmed with inventory and that the private entities that take all of the assetts off the banks books will dump them.
I guess we will see. I am hoping for that to happen.
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I’m of the school the banks don’t have the staff to manage these.
and they are terrified of taking the hit to the books.
When they foreclose they foreclose at the Mortgage price,
so no write down, they try and avoid paying any taxes insurance, fees,
maintenance, and they are hoping to sell the paper to TARP/PPIP/Geithner,
and avoid the hit.
So it’s all drifting sideways, expect their earnings to blow
once the spring selling rush is over.
