In my experience when a bank records a quitclaim deed in a situation such as this it’s because they conducted their research and concluded that they could not sign a release or certificate of satisfaction under the circumstances… that they didn’t believe they owned an interest in the mortgage or deed of trust that they could release, despite what the land records (and bank successors) reflect. 

Their analysis concluded it, “would remove inventory by encouraging homeowners to rent … rather than rehab and sell.”

But it's a few years later, and I've seen far more people enter and exit the business, and I've been forced to conclude that a few things are true.1.

So if I say, "My boss pays for my health insurance" you would naturally conclude that the premiums come out of my pocket, and I'm only indicating that the source of funds is my job.

Each enters into a type of dance until a price is agreed on and the sale concludes. 

Let me try to explain..You are concluding because I sell the house 1 second after buying it , it was illegal because I MUST have marketed it before I owned it?

But that is pretty much all you can conclude.

If they find that similar homes with finished below grade living areas in your neighborhood, in the last couple months, have been selling for (making a number up) $50k more than ones without that feature, the appraiser will (correctly) conclude that your home is worth $50k more because it has that below grade living area. 

:/A few nuggets, and others......not so much :)Anyway, Here's my educated response to the OP's question.In general, the Appraiser should be taking into account recent neighborhood market trends (recent sales/comps, absorption, DOM, etc) and current trends (active listings, pendings, cancelleds, expireds, absorption, DOM, etc), and reconciling those trends with the specific Subject transaction.The conclusions may contribute to positive adjustments to the comps, resulting in an appraised value higher than recent comps.Simplified Example: Subject contract price = $102kRecent sales (same models-no adustments necessary)Comp 1 - $95k COE (close of escrow) 6 mthsComp 2 - $97,500k COE 3 mthsComp 3 - $100k COE 1 mthsComp 4 - $99k COE 3 mthsAppraiser determines recent market trends are appx 12%/yr or 1%/mthTime adjusted SP's are:Comp 1 - $102,820Comp 2 - $101,400Comp 3 - $101,000Comp 4 - $101,970The Appraiser may be justified in concluding a market value of $102kThat's one way.

That leads me to conclude that the foreclosure impact will be far more watered down compared to the Great Recession.