I am not a very political person, but I can’t see how all these new regulations are going to help the real estate market.
Making the foreclosure process more difficult for the banks will just slow the price decline down.
Once a person is $100,000+ under water on their house, giving them six additional months to come up with $20,000 to cover their back payments is not going to help.
What the government needs to figure out, is how to incentive banks to make logical and safe loans to deserving customers again. Many of the properties we sell, bid one, etc, have multiple offers (because the pricing makes sense), but no one can seem to close escrow. A willing buyer cannot get a loan, a willing buyer and bank cannot get a high enough appraisal, FHA does not allow investors to sell properties because of the 90 day rule.
Let’s get logical, let the market correct itself and give willing qualified buyers the tools to buy again. Three years ago a bank would happily give someone a $400,000 loan on a house when they made $60,000 a year. Now it seems a buyer cannot get a $200,000 loan on that same house, when they still make $60,000 a year.
This is the problem the Government needs to solve before the market will normalize again!