Charles Rutenberg Realty
It'll divert buyers from foreclosures to equity sales and short sales. Problem is, the lenders are already so slow and overwhelmed with (and reluctant to do) short sales that I don't think that's a route most buyers should choose.
Don't worry about the market being flooded. Those foreclosures have to hit some time--now or later. It's just a matter of time-shifting, just as we saw with the market distortion with the so-called "first time homebuyer tax credit"--which started off not as a tax credit but a zero interest loan, and then morphed into a tax credit for folks including those who'd owned their homes for a long time. So you'll see market distortions, but then you'd see them at some point anyway.
The bigger problem is all the bad deeds out there, and not just the foreclosures. If you're on Active Rain, I've blogged a lot about that there.
And banks are trying to pressure homeowners--including those not behind on their mortgages--to do deeds in lieu of foreclosure. And the banks (here's my rant) are trying to pollute our political system--see H.R. 3808, The Interstate Regulation of Notarizations Act of 2010 which Obama--to his great credit--vetoed. That legislation would have legalized most of the robosignings.
For those who can or do not want to work anything out, the next best choice is a short sale. i have a blog with a complete list of tips and advice
Either the banks want the properties on their books for assets at year end to make them look valueable, or they are doing what they can to raise the prices of homes so they can then sell their own at a higher profit. As if they dont already have money coming out of every orifice.
And do they really think we are all so dumb as to believe that all these banks experienced these REO issues all at the same time? What do they do, share employees?
I think it is a possitive move. First, not all foreclosures are stopped. The banks that are holding off for now have issues to settle to make sure the foreclosures are legal. In the long run, this is the right thing to do.