American Banker.com posed the question today that many observers have been asking for awhile now: where the heck are all of the foreclosures?
“Ever since the housing collapse began, market seers have warned of a coming wave of foreclosures that would make the already heightened activity look like a trickle.
The dam would break when moratoriums ended, teaser rates expired, modifications failed and banks finally trained the army of specialists needed to process the volume.
But the flood hasn’t happened. The simple reason is that servicers are not initiating or processing foreclosures at the pace they could be.
“All the excuses have been used up. This is blatant,” said Sean O’Toole, CEO of ForeclosureRadar.com, a Discovery Bay, Calif., company that has been documenting the slowdown in Western markets.
Some servicing executives acknowledged that stalling on foreclosures will cause worse pain in the future — and that the reckoning may be almost here.”
The banks have worked to postpone the inevitable, and hide or postpone the losses. Eventually, reality wins, as always.
The full article –
http://www.americanbanker.com/issues/175_165/foreclosures-modifications-california-1024663-1.html
