I am taking this time to post an email I received about a blog I wrote sometime ago How Long Will It Be Until The Banks Open The Flood Gates.  I agree with every point of this email.  

You've received a contact message from your Contact Form on the ActiveRain network.

Message details:
From: Dana

Subject: from California (Sent via Activerain)

Just read your article about banks holding back their bank owned properties and all I can say is wow! YOU are on the mark! I own a repo cleaning business here in California. Business is sparse right now- regardless of how many homes I drive by that appear vacant, a mess, bank owned and NOT for sale.
In my desire to get to the bottom of my lack of new business... I have been asking LOTS of questions to many people in the know.
I talked with a broker in Temecula Ca a few weeks ago. She told me that she has a friend who works in Wells Fargo loss mitigation department. She said that thanks in large part to Obama's TARP billions- the banks now have the money to pay the taxes and other things on these banks owned homes for about another two years.
The banks are sitting tight on these empty houses in an attempt to drive prices back up. There little plot appears to be working.
Unlike a year ago- when the market here in California seemed rather flooded with unsold REO properties, most bank owned homes that come up for sale on the MLS today- are snapped up and SOLD within hours and a few days of being listed. Most have multiple offers $20-30 thousand ABOVE list price! The banks have intentionally created a NEED for higher priced homes and inventory- by intentionally holding back! While at the same time- they are starting to lend out the millions in new home construction loans to home builders here in Ca. Talk about double ending the deal?
As well, most say the home modification programs that were supposed to be helping distressed home owners are a giant joke. Most RE agents and brokers know of few people who have actually gotten loan mods and the help Obama kept promising. The banks appear to keep foreclosing and taking back their properties, they've taken the billions in government TARP money and made a run with most of it. Just thought you'd like to know. ;-)

I really don't think it's an unwise strategy for the banks. The real problem is that their balance sheets look so good from the TARP that they don't need to lend money. That's where the problem lies. Nobody can get a loan. The banks are not willing to help homeowners restructure their loans until they commit Harri Cari with their credit scores by missing three mortgage payments. What happens then, credits ruined, let them foreclose is the statement that I have been hearing.

By taking away the lending institutions pain, lenders don't need to do what it is that they are in business to do. LEND!

Dana, I had to post your email. It was filled with such good information and got me to say what has been getting under my craw.

So, if you are looking for a home.....and you have CASH... We are here to find you that perfect home.