The two positive things about Banks being slow to foreclose.

As real estate professionals we tend to look at things in terms of how efficient the market is, inventory and absorption levels... And all of these tangible factors are out of whack because of the inefficiencies and market manipulation performed by lenders reluctant to be turned into landlords.

Sure we have many years of this to look forward to thanks to our elected officials who decided to print money and just hand it to the banks. We can fill thousands of pages with what they should have done in terms of tying the money to performance. One idea would have been to tie the bailout money to actual losses incurred with approved short sales...

But here is the huge silver lining: millions of people living mortgage and rent free, some for over 2 years.

Many of these are experiencing crippling hardships and would be in the streets if banks were efficiently foreclosing and liquidating assets.

The second positive aspects has to do with market supply. When banks are inefficient in their asset disposition process, the inventory remains artificially low and prices don't plummet. This helps more regular sellers (in no distress) sell at higher prices and maintain values in neighborhoods.

Many of us would like the banks to foreclose and sell everything as quickly as possible, but we are forgetting that by doing so and due to the economy and lack of jobs, there are not many buyers who qualify. So, we would be replacing the banks with investors and flippers who would dump the bulk of these properties in the rental market.

When rents are real cheap because of the oversupply, the buyers have no incentive to buy...

So let's be grateful. Things could be worse. Let's shift our focus and energy and get involved politically and demand change and accountability from the politicians we have in Washington.