Watchhttp://ochousingnews.com/news/foreclosure-cancellations-in-california-up-62?source=Patrick.net
In the new law, banks are no longer allowed to pursue dual-track foreclosure processing. If a loanowner is seeking a loan modification, the process must be allowed to run its course — gaming the system included — before the bank and finally push out the committed squatters. In preparation for the new law taking effect January 1, 2013, banks are cancelling all their foreclosure proceedings on properties pursuing a loan modification. Apparently, this is a whopping 62% of all loanowners in foreclosure.
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Oil Can's website
Squatters rejoice!
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All these hurdles can only delay the pain, just like giving more drugs to the abusers. The consequences are slower housing recovery and hard to lend in the future. A mistake can be covered by a bigger mistake, but you’ll have to pay for all your mistakes eventually.
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To all commissioned salespeople that played along with the banks & all the fraud for years, the banks are now telling you to Go To Hell.
HA,HA,HA
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El Cerrito, CA
What this will really do is increase RE prices in the market. Less homes for sale=Higher prices. ALways has..Always will. This will continue the Re recovery bc it will increase Prices existing homes for sale and those that are borderline underwater in their own homes will push up their home prices into having equity in their properties. Then some may say, "I am not underwater anymore so they may want to sale and get whatever cash out they can.
Look at the current RE market in the SF Bay area, Values are coming back slow and steady, prices in some East bay cities have increased 20-40% over the last year. Even at those prices it is still cheaper to buy than to rent. Invenory is VERY low, there are Multiple offers on most properties. Owner occupants are competing with All cash investors..The banks are controlling the inventory and dripping homes on the market as they see fit to control pricing. It is working whether you like it or not..it may take 3-5 more years or mor but it willkeep prices rising and the RE market stable. There is not going to be another "CRASH" as many of the Bears would like to think. The Bears Gambled and the Bulls won. It is just the way it is.
I was in PHX last month for 2 weeks and I spoke with a lot of folks living there and hey all agree that the market is coming back and inventory is low.ALl the b news was saying the same. This new foreclosure law will only help sales values. Time to get out there all you bears and rethink your posdition.
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Los Angeles, CA
Mike,
How is doing all of that not just creating another bubble?
Pushing RE costs above and beyond(and then making it "affordable" with gimmicks) is just recreating a bubble.
With 2004-2006 pricing, it would take massive inflation for incomes to line up with housing prices.
I do agree this is what is happening. But I fail to see how this is a positive.
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Laguna Beach, CA
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mike2 says
You know what they say when all the opinion and news is slanted one way...
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El Cerrito, CA
Dodger fan
You are right that it may create another bubble..we don't know that yet. I agree it is fabricated and manipulated by the fed and the government. I don't think it will cause prices to go back to the Pre-bubble prices anytime soon. It may be that people will have to Qualify for a loan like the Old days and the way it should really be. Darell says there will be 2-30 million homes coming on the market? That won't happen anytime soon. Especially with the new laws coming on after January 1st of 2013. There are plenty of homes in Foreclosure and underwater still but they will drip on the market now not Flood the market. Perhaps in some areas they will flood the market but in most Metropolitan areas it will be a drip and Prices will rise and stabalize. I am not saying it is a Positive thing but it is happening and has been happening the last 18 months. The Banks figurd out a way to minimize thier losses and it is working for them. The Housing Bulls are winning.