[quote=ucodegen]The banks ‘delaying’ foreclosures were for two other reasons as well.
They were overloaded and were unprepared for this many.
Once the bank forecloses, they have to realize the mortgage/loan at the actual value that they can get from the property they have foreclosed upon, and therefore book the actual loss versus using the ‘paper’ value on the loan. Could make many more banks insolvent.[/quote]
Agreed, though I believe that they did know about the looming foreclosure crisis. They just had to pretend that “NOBODY could have seen it coming!” in order to make the bailouts more palatable to Joe Sixpack.
