How will we ever get out of the financial debacle we are currently in?
The Problem: More houses are available than the current credit system will sell too.
There are not enough buyers with good enough credit to buy all the houses that are currently on the market and about to come on the market with the back up of foreclosure.
- Back Up of Foreclosure – Why?
- banks and lawyers doing RoboSigning, it’s illegal, and the whole foreclosure process must be started over. Causing a higher loss for the banks and homeowners can stay in their house longer.
More houses in the pipeline to go through the foreclosure courts.
Banks are waiting to file foreclosures because they don’t want the current market too overwhelmed with houses making the current low housing prices drop even more. Which in turns makes the banks have a bigger loss.
What is one bank VP’s opinion from a servicing co. I’m working with on a current short sale?
We need a backer to guarantee losses when the banks loan to higher risk buyers. Without someone (the government) to guarantee losses when a high risk buyer goes to foreclosure, banks won’t change their 800 credit score and 20% down criteria.
What’s your thoughts?