In the Inland Empire of California the bank owned homes are few to none these days with the moratorium over our heads. Then if the banks are not going to foreclose then why are they not speeding up with the short sale programs then. At least the average time for a short sale is about 3 months now instead of 6 to 9 months. I was actually able to close my last short sale in 60 days. That was a miracle.
The main question is what is going to happen to the home owners that are not paying their mortgage and are waiting for the government to give them a free ride. They refuse to do a mod and are not interested in selling their home. They want to keep it and the bank is not punishing them for not paying at the moment because they can not afford the payment. But eventually they will either have to make an agreement with the bank, sell or be foreclosed upon. The banks can not afford for these people to stay in their home for free forever, or will these homes go to a tax sale because those are not being payed either. That would be funny if the bank allowed the owners to stay for 5 years to lose the property to a tax lien sale.
When the bank does start forclosing again will it flood the market. The banks have a choice to make, wether to find a way to slow the release of the REO's once the moretorium is lifted or to flood the market once again which will cause another plung in prices again. The power of the market is in the banks hands now and only the CEO, if even they, know what they are going to do.
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