It's true, some banks are thinking that it might be best to hold onto properties acquire the additional debt, on speculation that a bail out is coming their way.

For Realtors who work Short Sales, this isn't good news. Truth is, anything that delays an already long and exhausting closing period does nothing for building consumer confidence as well as anyone's bottom line.

 For homeowners who are hoping to utilize the Short Sale as a Foreclosure Avoidance option, these delays on speculation could force homeowners into foreclosure or at the very least make them wish they just abandoned the property all together. 

For Buyer's this is a nightmare. The closing process is already long enough and additional delay is going to cause many to simply pack up and move on to the next property.

Last but, not least, for banks, this could end up being a huge mess because of the mounting debt. I have got to wonder, what happens if no bail out comes?

So, it is my opinion that banks who are holding off negotiating deals based on pure speculation that a bail out is coming, is a waste of everyone's time, money and energy.

It could be that the bank would make more money if they would out source their Loss Mitigation Departments to Cleo's Psychic hotline where they can attempt to forecast who is at more risk of financial ruin, their clients or themselves.

www.JesseGonzalezRealEstate.com