The fact that banks are now taking "short sales" seriously and continues to do a timely release of foreclosures, in my opinion has and will continue to do more to restore the market than realtor organizations messing with something that, for now, seems to be working.......
If they release the shadow inventory then it will flood the market with homes reduce value if homes, days to sold will increase and your commission checks get smaller.
It's the economies of supply and demand. If the demand is limited like it is for qualified buyers if you have more houses than buyers then the price of houses goes down to attract a buyer. But if you have more buyers than houses then the buyers will bid higher for the house they want because choices are limited.
The Michael Group
Truth is they don't have the man power to even begin to start releasing their shadow inventory. One bank I won't mention names has an entire floor of an executive building with boxes of files, from floor to ceiling, of foreclosures, waiting to be listed. The person in charge of going through those files, states they are just overwhelmed and understaffed. On top of the job cuts they had already seen as a result of the losses.
Releasing the shadow inventory would only drop prices even further.
Have a great day;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Retired Mortgage Banker
Plus you have to think...most loans are probably not held by the banks themselves, but packaged up and resold to 10,000 different hedge funds and investors and mutual funds and foreign banks and who knows who else.
So I don't think it is simply a matter of passing a law...that's dangerous. You want to force a private investor to be forced to sell their asset at a time that is convenient and beneficial to who? You implement a regulation like that and the mortgage market could disappear. Investors might not want to take on that risk in the future.