I agree that foreclosure is the only way to clear properties that actually should never have been sold to the buyers because they could only qualify with special exemptions forced by government, but I don’t agree that ‘policy makers’ will necessarily ‘wake up’ before the election. Which means the problem will fester and only get worse over the next few weeks.
Happily, the election is very near and if Republicans really do win big, particularly if Christine O’Donnell wins in Delaware, then there is the chance that recalcitrant Dems will be forced to admit that their interventions have only made a bad problem worse and that removing their incentives has to go. Then the foreclosure paper problems need to be dealt with and the properties put up for distress sale, thus setting the floor.
So, I’m looking at at least three years of work-off before we get anything like a normal real estate market.
And I’m not referring to the market of the 2000’s. RE gains of 1 to 2% per year should be the normal equity gain, IMHO, outside of sweat and investment-improvement equity.
“I agree that foreclosure is the only way to clear properties that actually should never have been sold to the buyers because they could only qualify with special exemptions forced by government”
Most foreclosures occurring now are due to unemployment. Not because an ARM reset.
The sad part of this is, many of us (many here, myself included) won’t be able to take advantage of the bargain-basement prices on these houses, due to having another home, that is now 100 grand upside down that they can’t sell.
“Happily, the election is very near and if Republicans really do win big, particularly if Christine O’Donnell wins in Delaware...”
Oh man, this would be a nail in the coffin, but - sadly - I don’t see it happening. There are too many voters who vote SOLELY like it’s a popularity contest.