In my humble opinion the problem is with the lending "establishment". They are stingy with loans and very slow in their approving of short sales.
And they created this fiasco in the first place.
In over 30 years in Real Estate I have never seen anything like this. Additionally there is just too much inventory to stabilize anything.
Come on lenders; get real already!!
Well Jim, You sound just like a Wells Fargo mortgage broker I know out west. He's familiar with an area and the people in it; he recognizes some loans should be made simply on the basis of character [they will be paid no matter what]. Oyjer hand, bank has a set of principles which stand against lending to those who will pay. My friend, Richard, has become very agitated.
Further, and as I suspect you know, the Fed/Treasury Complex has pumped multiple trillions of dollars into the largest finanancial institiutios - there is absolutely no shortage of money to lend. Many banks are simply lending back to the Fed, recieving very low rates but high security/no risk. Same time, banks' capital ratios have risen nicely to, I believe, 8.50% but Level 3 'assets' are still a large drag [many, I believe, were transferred to the FRBNY in2008 and 2009. U.S. taxpayers are expected to pay difference between market and model.
This will surely not assist consumption in the U.S.
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