Many Foreclosure Firms Say the Debt Relief Act not being Extended, is Causing More Foreclosures

In the last few days I have had conversations with three foreclosure firms and all said the same thing, there are already more foreclosures being started and continued mainly because it is anticipated that the bill may not be extended. That is hard for me to believe, but maybe the banks and attorneys know more than we do.

Lenders and servicing companies would much rather see the short sale process continue instead of ramping up the foreclosure machine again. The foreclosure process takes much longer and is much more costly.

A number of Realtors are telling me that more bank owned properties are now coming onto the market. But by perpetuating foreclosures, it will add more time to complete the real estate recovery process. Not all markets have the issue, but the ones that do will not help real estate values going forward.