Monday, January 14, 2013
The Wall Street Journal looks at the link between efficient real estate foreclosures and the rebound of the housing market:
[T]he rebound is strongest in states that let lenders enforce contracts. We're referring to the difference between "nonjudicial" states that have streamlined foreclosure procedures and the 23 "judicial" states that force lenders to go to court to enforce mortgage contracts. Prices are stabilizing in the former but still faltering in much of the latter, which isn't surprising, except to politicians. Housing markets can't clear until lenders can foreclose on delinquent borrowers and prices fall far enough to attract buyers who can afford the mortgage payments.