Many banks are sitting on foreclosed homes rather than selling or even listing them. Here's what the SF Chronicle says about the situation:
Lenders nationwide are sitting on hundreds of thousands of foreclosed homes that they have not resold or listed for sale, according to numerous data sources. And foreclosures, which banks unload at fire-sale prices, are a major factor driving home values down.Why is this important? Because there's a mountain of adjustable rate mortgages ready to blow through our collapsed (still collapsing?) real estate market over the next few months.
In a few words, the president's $75 billion home loan rennegotiation program is/was absolutely necessary. The problem we have is with the banks. Which brings us back to what I've been advocating for some time, nationalization