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Banks Purposely Slowing Foreclosures?

Sunday, June 19th, 2011
Posted in Uncategorized by Joel Gross

I saw an interesting article today in the newspaper that banks have greatly slowed the foreclosure process.

I actually think it is their business strategy going forward- if they foreclosed immediately on everyone who deserved it it would flood the market with homes. The massive increase in supply would knock home prices down even further, causing many more people to strategically default on their mortgages.  The banks would be forced to write off even more mortgages, perhaps forcing the banks themselves into bankruptcy.

So what does the banks slowing of the foreclosure process mean to the rest of us? The housing market is still in a bubble and has a long way further to fall.