> Then the bank holds... gets a bail out, the home is written off, and the market is just as tight as it ever was. This! I've been talking to people about this

> Then the bank holds... gets a bail out, the home is written off, and the market is just as tight as it ever was. This! I've been talking to people about this for years. Most don't believe me when I say it. In fact, I've only had one person, a banking official, acknowledge that this was standard practice, but he assured me that it was coming to an end (two years ago). But yes, what you've written is totally the case. In fact, I just checked on a house that I know to have been abandoned by its "owners" in early 2011, but is still recorded as in their possession. Those folks sent the bank jingle mail, which the bank kindly sent back! (LOL) [edit 1: I also don't think that many of the low- & no-money down portfolio sales that Fannie and Freddie did to clear their books helped matters.] It's almost like Japan (from the little that I've read) was a blueprint for the U.S. etc., and the U.S., I suspect, will be an further example for other markets. [edit 2: Book recommendation Chain of Title by David Dayen]