According to Diana Olick of cnbc,  foreclosures are down because of all the regulations imposed by states, especially CA. Now banks have to show proof of loan ownership before they can foreclose. That’s tough since the loans were “sliced and diced”.

The market has changed because of this. The abundance of cheap properties bought by investors to fix and flip or to fix and rent has dried up. Now the higher priced houses are selling.

However, we still have the overhang of under water properties. Since i am dealing with a situation like this myself in trying to dump a family member’s condo, i know first hand how difficult it is to get an intelligent answer from anyone. Wells Fargo has been good about this but it’s fannie mae who is being ridiculous. Our govt at work!!!