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How will the GMAC/ALLY/JP Morgan debacle effect the housing market?


               
2010 Sep 30, 6:45am   1,254 views  1 comment

by FMR Tenant in Foreclosed House   follow (0)  

The judicial foreclosure proceedings against my landlord (in Connecticut) has been delayed. I suspect it is related to JP Morgan's suspension of foreclosures announced today.

If this happens all over the country, what will be the impact on the housing market? On one hand, prices may go up in the short run because supply has been restricted. On the other hand, all the uncertainty may cause prices to go down.

Do you think banks, without a foreclosure option, will be more amenable to short sales?

#housing

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1   pkennedy   2010 Sep 30, 7:52am  

They probably have enough inventory laying around to keep a good selection of properties on hand. There are other lenders who will fill this gap as well.

Net/net probably not too much.

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