it won’t be that fast. banks are dragging their feet to avoid showing all the losses at once.

however, the floodgates have opened again on foreclosures now that the new law has settled in. i subscribe to LA county westside foreclosure notices. this last week, 626 notices of trustee sale were filed for just the west side of LA county.

don’t believe any spin the real estate industry tells you. foreclosures will continue to increase into 2009 and 2010. in a recession, with a bleak employment outlook, look for housing prices to go back to 2002 or even 2000.

Foreclosures are just being delayed for the above reason … ‘and’ … because the Banks are waiting to see what the Taxpayers will offer them!

If someone bought in early 2006 at $2.0M and still owes $1.8M … the Bank can foreclose. That foreclosure gets counted as an “Existing Home Sale” at $1.8M (making that number fake too), and the Bank then puts it on the market at $1.4M. The Bank losses $.4M, if it actually sells at that price.

… or the bank can stall the foreclosure by “working with the homeowner” and wait to see what Joe six-pack will pay for it with his taxes once Washington comes to their rescue.

I am expecting a HUGE dump of homes onto the market after the Bankers open their gift basket from Washington. They will immediately dump the homes that Washington won’t bail-out … and hopefully the games will stop, and price will get back in line with incomes and peoples ability to afford the home … and not this Lottery mentality over the last few years.

Look at facts and numbers, look at foreclosure count and forget what people say.

HGX is slowly reaching its 2003 value of about 80. The home prices should fall back to 2003 prices, right before the madness started.

Good news for home buyers, all they need to do is just wait and buy a better, bigger house with more down payment in the near future.

Renters are Americans too and they want to buy houses. Why is the public all worried about the 3% homeowners who bought in 2006 madness at outrageous prices or those who refi’d 110% and cashed out hundres of thousands and never paid the bank a single payment with thousands in the bank? (yes you can do that) Now the pour tax payers have to pay the banks?

19,618 on Countrywide alone compared to 12,800 just in July. That is 50% rise in 3 months!! Once these properties go through auction and not sell and hit the MLS you will see massive drop in prices. Bank CEOs need the bonus so they will drop the properties to show progress.

http://countrywide-foreclosures.blogspot.com/