How will foreclosure freeze 3-6 months affect home price?

[blahblahblah]

The foreclosure freeze is just another market distortion that prevents participants from determining a house’s real value. E-Z Credit was the last one, now we’ll get foreclosure freezes, principal reductions, etc… on and on and on. The banks and government and of course the idiot speculators don’t want these assets to return to their real value so they will resort to ever-more exotic and weird shenanigans to prevent this from happening. These will go on as long as they can possibly get away with it. When this foreclosure freeze expires you can bet that there will be lots of pressure to extend it.

[peterb]

Any delay they create will just make the crash that much more severe when the foreclosures are started back up. The main reason they’d pull this off would be to keep the homeless level down while keeping the foreclosure off the banks books. Mostly for the banks, though. Just another delaying tactic while they hope for salvation to somehow magically appear. IF they were to do this, there’d be a huge disclocation in the market. It’d basically be free housing for people that are headed towards BK.

[peterb]

Any delay they create will just make the crash that much more severe when the foreclosures are started back up. The main reason they’d pull this off would be to keep the homeless level down while keeping the foreclosure off the banks books. Mostly for the banks, though. Just another delaying tactic while they hope for salvation to somehow magically appear. IF they were to do this, there’d be a huge disclocation in the market. It’d basically be free housing for people that are headed towards BK.

[peterb]

Any delay they create will just make the crash that much more severe when the foreclosures are started back up. The main reason they’d pull this off would be to keep the homeless level down while keeping the foreclosure off the banks books. Mostly for the banks, though. Just another delaying tactic while they hope for salvation to somehow magically appear. IF they were to do this, there’d be a huge disclocation in the market. It’d basically be free housing for people that are headed towards BK.

[peterb]

Any delay they create will just make the crash that much more severe when the foreclosures are started back up. The main reason they’d pull this off would be to keep the homeless level down while keeping the foreclosure off the banks books. Mostly for the banks, though. Just another delaying tactic while they hope for salvation to somehow magically appear. IF they were to do this, there’d be a huge disclocation in the market. It’d basically be free housing for people that are headed towards BK.

[peterb]

Any delay they create will just make the crash that much more severe when the foreclosures are started back up. The main reason they’d pull this off would be to keep the homeless level down while keeping the foreclosure off the banks books. Mostly for the banks, though. Just another delaying tactic while they hope for salvation to somehow magically appear. IF they were to do this, there’d be a huge disclocation in the market. It’d basically be free housing for people that are headed towards BK.

[cr]

[quote=KIBU]Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/
[/quote]

Hi KIBU, you’re right. What you get then are more homes purchased at artificially high prices by people who choose not to wait even longer for prices to bottom, or return to affordability.

Then as prices fall further those people who did buy in that time end up owing more than their house is worth too.

Even those they “help” stand to lose more later as their home will have lost even more value after the moratorium.

[cr]

[quote=KIBU]Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/
[/quote]

Hi KIBU, you’re right. What you get then are more homes purchased at artificially high prices by people who choose not to wait even longer for prices to bottom, or return to affordability.

Then as prices fall further those people who did buy in that time end up owing more than their house is worth too.

Even those they “help” stand to lose more later as their home will have lost even more value after the moratorium.

[cr]

[quote=KIBU]Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/
[/quote]

Hi KIBU, you’re right. What you get then are more homes purchased at artificially high prices by people who choose not to wait even longer for prices to bottom, or return to affordability.

Then as prices fall further those people who did buy in that time end up owing more than their house is worth too.

Even those they “help” stand to lose more later as their home will have lost even more value after the moratorium.

[cr]

[quote=KIBU]Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/
[/quote]

Hi KIBU, you’re right. What you get then are more homes purchased at artificially high prices by people who choose not to wait even longer for prices to bottom, or return to affordability.

Then as prices fall further those people who did buy in that time end up owing more than their house is worth too.

Even those they “help” stand to lose more later as their home will have lost even more value after the moratorium.

[cr]

[quote=KIBU]Hi Cooprider, on one hand they freeze foreclosure and on the other hand they will lower the mortgage rate to the bottom so this should help “first time buyers” from “remain priced out of the market” …… but keeping price inflated artificially!!!

Regulator sees mortgage rates below 4 percent
http://www.msnbc.msn.com/id/28165488/
[/quote]

Hi KIBU, you’re right. What you get then are more homes purchased at artificially high prices by people who choose not to wait even longer for prices to bottom, or return to affordability.

Then as prices fall further those people who did buy in that time end up owing more than their house is worth too.

Even those they “help” stand to lose more later as their home will have lost even more value after the moratorium.

[sdduuuude]

“Foreclosure is the solution, not the problem”
– HLS

It only delays the solution.

[sdduuuude]

“Foreclosure is the solution, not the problem”
– HLS

It only delays the solution.

[sdduuuude]

“Foreclosure is the solution, not the problem”
– HLS

It only delays the solution.

[sdduuuude]

“Foreclosure is the solution, not the problem”
– HLS

It only delays the solution.

[Author]

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