sdr you are correct. Indeed I should have qualified my statement to imply that in no way will this help stem the depreciation cycle. However, yes you did peg it, it does help sellers by adding an implicit constraint on the market. Absolutely.
I just don’t want to be called a liar without being called a liar… again….
Anyways, yes yes yes… I have been ranting about this sort of crap since 06 and though you and I clash on alot of things, you have as well.
I do have to admit I was not as forthcoming with the spring prediction as you were. (admitting you are right really sticks in my craw as you well know)
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Kind of Baz… I look at it this way…if I were a seller in distress and I knew that the foreclosure process has just been extended another 3 months, to me that equates to 3 more months of free living. Now I believe, but this is pure speculations, that one of the calculations an asset manager or negotiator for a short sale performs when reviewing a short sale offer, is the net of the short sale verses the net of letting the home go to foreclosure and reselling it. This ruling by the legislature just added 3 months of free living for the homeowner. That also adds 3 months of property tax that the lender has to pay if they do foreclose. It also keeps the asset non performing for that much longer as well doesn’t it?
So my SPECULATION is that it would help to incentivize short sale negotiators to recommend short sale approvals to the investors they service the loan for.
This is a guess. sdrealtor may have more insight on this one but I think it is a sensible leap of faith.
