Quote:
Originally Posted by Bigtoe
If the feds start buying up bad loans with this bail out package there will be no reason for a bank to participate in a short sale. There will be more money in it for them to foreclose and then sell it to the feds.
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They will never buy enough bad loans for short sales to be deemed useless for banks. the 'bail out' will not be sufficient to prevent all foreclosures, short sales, etc. It is true, there will be many who will be saved, but it will not be enough to have a negative effect on today's short sale market.
A bank saves itself from NOT foreclosing on a property with a short sale and in a way, it's an out for them as well as the borrower.