Why?

Because of supply and demand; banks typically sell properties they repossess, and they know that putting more homes on the market will hurt values.

Once a lender takes back a home, it pays the costs of owning the property, including insurance premiums, homeowner association fees and maintenance. So banks seemingly have decided that it makes sense to leave a borrower in the home.

DING, DING, DING!

You win a prize…

So you see, it is NOT the homeowners delaying the foreclosures, it’s the banks.

Why doesn’t everyone get this by now.

The banks do not want the properties and there is no one lining up to buy them but the message is get the deadbeats out so we can move the economy forward.

This is simply not factual.

When will they realize this is the wrong approach?

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Banks backing off on foreclosures in Palm Beach County

In an unexpected bit of fallout from the real estate crash, lenders are filing far fewer foreclosures.

Alas, that’s not because the economic picture is improving but because the housing market is flooded with repossessed homes, and banks and courts are inundated with default proceedings.

Foreclosure filings in Palm Beach County plunged 70 percent in July, August and September compared to the same three months a year ago, research firm RealtyTrac says in a report to be released today. Filings fell 57 percent in Florida and 34 percent nationwide.

In normal times, a sharp decline in foreclosure filings would be cause for celebration. But these aren’t normal times.

Nearly 2 million Floridians owe more than their homes are worth, and the state’s unemployment rate has been stuck above 10 percent for more than two years.

Foreclosure experts say several factors have lenders taking back fewer homes. One is simple supply and demand; banks typically sell properties they repossess, and they know that putting more homes on the market will hurt values.

“The banks don’t have a motivation to push these through quickly,” said Tom Ice, a foreclosure attorney in Royal Palm Beach. “There’s a lot of expense involved in owning the houses. And they understand that flooding the market with properties is going to push down the resale value of their own properties.”

John Tuccillo, chief economist for the Florida Realtors, agrees.

“Banks are in business to make as much money as they can, or to lose as little money as they can,” he said. “It’s a bad business decision to flood the market.”

You can check out the rest of the report from the Palm Beach Post here…

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4closureFraud.org