[achilles2000]

This is a disaster for the RE market. Unless a way can be found to clear the defaulted debt, the market won’t rebound because of the foreclosure overhang.

[Pearls Before Swine]

This is a disaster for the RE market. Unless a way can be found to clear the defaulted debt, the market won’t rebound because of the foreclosure overhang.

I agree, although I heard one opinion that this would temporarily boost prices, because it would remove foreclosure inventory, or at least slow its entry, from the market. A different interpretation of supply--available supply versus impending supply.

[Notary Sojac]

the market won’t rebound

The housing market needs to "rebound" to where it was in 2004-06 just about as much as a recovering PCP addict needs a good, strong hit.

We are just barely getting back to where home prices are in line with incomes. Need to stay there.