Has BofA Hit the Tipping Point? You have to wonder. Take a look at this article by Jonathan Weil. http://www.bloomberg.com/news/2010-11-04/bank-of-america-edges-closer-to-tipping-point-commentary-by-jonathan-weil.html
Earlier this week I posted a comment on a blog about pressure on lenders from the investor side of a bad loan. It may be time for the lenders to start working through their short sale applications. Not that it has anything to do with societal issues. But to mitigate the loss they may take on from investors. You have to wonder just what can happen when a lender like BofA (who swallowed a lender like Countrywide) is facing strong pressure from investors to force buybacks of what they perceive to be knowingly bad product.
If lenders begin to approve short sales with more regularity, I bet it will have to do more with minimizing the possible buyback of thousands of loans at full value, than to finally just take the hit on a short sale. None the less, if there is enough pressure this many be the motivation to finally work more short sale product through the system.