The No Foreclosure movement

[Jack Bobeck]

Happy New Year! 

I found this great article on Foreclosures. I have a Google Search on the topic, because i believe we will see more as the economy and rates rise. However, in some Metro areas we have seen Foreclosures rising, but, the banks are NOT taking them back the same way they did during the last Financial Crisis. 

Some of this might be stronger Consumer Policies in more Consumer friendly states. But what long term effect does this have for banks and then those that have to report earnings with more and more dead beat properties on their books? I did not know, living in Florida, about the  California Foreclosure Prevention Laws which have increased the time and the monetary cost of foreclosing on property in California. Same goes in New York with their New York State's pre-foreclosure notice requirement. 

So where does the wheel stop? If its more expensive to foreclose on properties, do banks stop, let the properties sit or do they send the properties to Vulcher Capitalists that go after the owners? Is it healthy to have all these consumer friendly laws that upset the balance of a natural foreclosure market?

Your thoughts?