[quote=sdduuuude]Some thoughts to explain why I don’t know:
Been hearing about the Tsunami so long, one has to wonder if it is ever coming. Is it a myth or the boy who cried wolf ?
A hold on foreclosure activity due to robosigning/legal activity/attempts to “keep homeowners in their home” last year would explain why now instead of last year.
Been hearing Tsunami warnings on MSM (and TG’s friends) lately, for sure. That suggests it is not going to happen.
Many say short sales will take over the market rather than foreclosures.
I think banks are struggling to recover from the credit crisis. Their position using mark-to-market can’t be good. They’ll have to dribble this stuff out over time unless one bank panics.
If there is a tsunami coming, the lender who panics first wins.
A guy I know and trust said he has insider friends at a biiiiiig bank. They have issued a tsunami warning. That’s from inside a bank. Interesting.
Right before a tsunami hits, the tide retreats rapidly. Currently, inventory is retreating rapidly. Not sure I put much faith in this comparison, but it is interesting.[/quote]
The whole dribble theory implies that the banks are actually smart enough to coordinate a planned system of gradual release of homes to control flow of foreclosures to stabilize prices.
That is putting a whole lot of faith into the banks that they are smart and capable enough to do that.
Another thing is, if they can be that effective controlling supply, then why lose control in LV, AZ, and FL?
Plus CA is a non judicial state when it comes to foreclosure, so I doubt there’s a huge logjam of homes waiting to be foreclosed. When it comes to major population centers in CA, I think underwater owners have come to realize that there are enough government help with low interest rate and inflation that by holding on, they will eventually be “even.”
