I know of several homes in my town that had buyers, however the banks dragged for weeks and the buyers backed out resulting in a foreclosure. Why are the banks dragging so much? My thinking is they are getting tax breaks when they have to take a home back.
Banks don't get tax breaks that make it more profitable for them to foreclose on a home than to allow for an orderly sale that avoids foreclosure. Banks, however, are having some problems getting back into a lending mode after being burned so badly by losses on real estate loans.
Unhappily, so many homeowners are trying to sell their homes now to avoid foreclosure and credit problems, that banks would have to gear back up to the production levels that some argue contributed to the "current difficulties" in order to handle all the requests. Certainly, a quick return to those levels is not healthy for lenders, for the economy or for mortgage lending.
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Banks don't get tax breaks that make it more profitable for them to foreclose on a home than to allow for an orderly sale that avoids foreclosure. Banks, however, are having some problems getting back into a lending mode after being burned so badly by losses on real estate 