Foreclosure Stoppage? Could it be the fix?

The banks and government just can't seem to do anything without creating a more challenging set of circumstances. First they create the housing bubble by giving credit to anybody with a pulse and I am not sure this was a requirement. Then they tighten credit so that even the best borrowers can't get credit. Then they design a modification system that will hardly benefit the borrowers. Then they get in the way of short selling of the homes. Finally they are accused of falsifying documents and forging signatures. I would have to say we have certainly proved to the rest of the world we can only be trusted to do whatever we want to at any given time as long as we don't think anybody is watching or paying attention. I know I sleep better at night knowing the place that keeps my money can't be trusted to do the smart or correct thing. Well they might have messed this up enough now that we see a silver lining in this debacle.
If the government stops the foreclosure process and forces the banks to reexamine their processes and it takes them long enough, which shouldn't be a problem. The inventory may slow from coming on the market causing the prices to go up. It may also cause the banks to get serious about allowing the short sale process to work creating less foreclosures.
This buys some of the people out here more time to talk to a real estate attorney and CPA to see if the short sale process is a better avenue then the foreclosure. It almost always is and it may be a little more work buy it does allow you the homeowner some control of how it will effect you. There are attorneys and CPA's that will do a consult for a minimal charge, some as low as $50. A professional real estate agent can help you find a qualified real estate attorney and CPA and also help you through the process. The real estate professional should be paid by the banks when the process is complete so there should not be a charge to the homeowner for selling the house. Some agents will ask for a retainer upfront for their services and I guess I would continue to look for another realtor because there are many excellent short sale professional Realtors out there that will not charge a retainer or if they do it is refundable unless the homeowner quits the process before the process is able to be completed, otherwise this would be refunded at closing.
The sceptics say all this is going to do is slow the recovery but I think we might not be as smart as we think we are and this could be just what we need. Less intervention and some time for the market to cure it self.
We at the Burkhardt Team would be happy to discuss these topics and more with anybody that is interested and will continue to get you current information and ideas. Please forgive us for any inaccuracy's and feel free to give us topics you would like us to blog on.