oddsneds

6.5 Million Foreclosures; Is There a Behavioral Problem?

6.5 million foreclosures by 2012 - that's 1.3 million per year. Is that unduly excessive? I don't know what's been considered "normal" over the past 20 years, as a percent of total homeowners (not just the absolute figure). Perhaps double the norm? Looks like another analyst making a routine extrapolation made out to look like a headline.

Yesterday I read a post describing why a bank COULD NOT rush the foreclosure procedure, due to all the legal steps involved to justify the foreclosure in a future possible legal action by the homeowner. The bank doesn't want to eat the shortfall hence the reluctance to do the short sale, vs. the foreclosure process where the homeowner is still on the hook.