I’m all for slowing down the foreclosure mess to make sure that banks are following property rights law to the letter (e.g. foreclosing on homeowners without a mortgage), but as with anything in life, the longer you delay or ignore a problem, the more expensive and more painful it will eventually be.
It [foreclosure numbers] depends on how quickly the banks want to process everything that’s been delayed. But we will inevitably see a huge run up in foreclosure actions in Q1 as the lenders and servicers need to catch up.
This data adds further support to the double dip in real estate thesis, even though a flawed lagging indicator like the Case Shiller Index confirms it.
But this would also suggest that even though the foreclosure process is slowed/stalled (via the robosigning debacle), that we might begin to see the light at the end of the tunnel in 2011 once foreclosures ramp up and home prices continue to accelerate along the downward slope of the real estate bubble.
At this rate, and at these falling prices, looks like I’ll be waiting a few more months to get back into the real estate investing game. No reason to buy a short sale or foreclosure now, when 3 to 12 months from now the selection will be even greater and prices will likely be lower.
What do you think?