As long as banks don't foreclose on houses, I believe they don't have to 'write off' the written down value of the property... In that regards, the longer they're able to carry the 'non-foreclosed' property on their balance sheets, doesn't that actually make them look BETTER than having to write off the remaining mortgage as CONFIRMED DEBT?
Actually it is very bad for the banks. The faster the banks can get rid of foreclosed homes the better off they are. If a Moratorium is in affect the banks will have millions of homes that people are living in that arent paying their mortgage. The people that own those securities will be wanting there money and it will come out of the banks pockets because they screwed up the instruments. It was estimated that it would cost up to 2 billion a month for the banks. It would also mean future lawsuits against the banks. Good? no its really bad.
Exactly! I think we are all sick and tired of the games these banks are playing with their accounting. We all know they are insolvent. The banks are just praying that the economy will improve to drive real estate prices up. Sorry banks, no such luck. All the banks are doing is pushing the inevitable down the road, but time is about out.