This article from DS News outlines how the states of CA and NEV have formed an alliance to streamline their processes in their attempt to litigate with major lenders over the “robo singing” fiasco. Apparently the investigation has stalled as negotiations with servicers has brokeb down and taken over a year so far with no resolution in sight.

This is just an example of the forces at work that are keeping many foreclosures from reacning the homes for sale in Maricopa Arizona market and has led to an increase in “shadow inventory” in this community and most likley nationwide. Anyone who believes the media hype about foreclosure rates decreasing is not in touch with the underlying story here. There is still a very large number of homeowners in a distressed situation and this will only drag out the housing market crisis over a longer period of time.

Hopefully lenders will realize that the best way to avoid legal issues is to increase their efforts to modify exisitng loans or, if that is not in the best interest of the homeowner, streamline their short sale processes so that they can facilittate the removal of these “bad loans”.

http://bit.ly/tEgw5O