Let's get to this sooner than later. For this economy to recover and get back to any resemblance of a "normal" real estate market, we need this moritorium to be short lived. It is like delaying thte inevitable and insuring that it's going to be a lot more painful for a whole lot longer.
It's time we embrace the bandaid mentally. Let's get the darn thing ripped off as fast as is humanly possible. Intense pain for a shorter period of time gets my vote. The moritorium for any amount of time is allowing all the distressed home owners facing foreclosure a little relief but meanwhile the inventory of homes that will eventually go to the market place is building like a wide river blocked with debris and a bunch of logs, with the currents of water still rushing past. This too will , with any doubt, bust wide open sending the glut of foreclosures to the marketplace all at one time.
There is the argument that once the banks take the properties back, that they will slowly leak them into the real estate market. This will only delay and again extend the pain we are sure to continue feeling, until we can get through this unimaginable inventory of homes.
Short sale's still remain the best solution for the banks and distressed homeowners. It also reserves the integrity of every neighborhood. Bank REO's have been the downfall and continues to slide most home values in the wrong direction, in the areas where they are located. Short Sales are still netting the bank 70 cents on the dollar vs. REO's that are only recooping between 30 and 40 cents/dollar.
It doesn't take a rocket scientist to realize the benefit of the SS for the bank and the homeowner. Instead of foreclosing and then moving to investigate all the forclosures for improper proceedings, let the professional real estat agent sell the property on a short sale. Let's get the inventory absorbed and get back to a semi normal real estat market. In the end the economy will recover must faster, which I think we can all agree is everyones goal.
