[quote=SD Realtor]
My hope is that I am wrong. I am not saying foreclosures or distressed properties will halt. However there will indeed be a reduction, more then people care to admit. Rather then a huge second wave I think it will be more like a long drawn out rising tide, slowing and inexhaustibly washing in. Again, some markets have already hit a point where alot of risk has been washed out. What will be particularly interesting to me will be the dilema of the distressed homes in the 600k-2M range. My hope is that nothing will happen to these homes.
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Perhaps this topic is worthy of its own thread. It looked to me like Schwarzenegger’s foreclosure moratorium talk was more an attempt to muscle the banks into doing workouts on loans – the moratorium would not apply to banks that have workout programs in place. I believe – I hope – that the Administration understands that a true moratorium would further impair bank asset prices and would make the situation with the financial and economic systems worse.
For a moratorium to be popular, it would also have to exempt the higher end houses, as I think your final two sentences suggest.
