Banks starting to foreclose on delinquent properties in 2012

This is happening.

We noted that in Southern California, over 50 percent of all MLS inventory is now composed of short sales showing that banks are now willing to sell homes for less than the original mortgage balance. One of the more interesting trends is the aggressive pricing we are seeing on some of these listings.

Of those in actual foreclosures, nearly half have made no mortgage payment in two years. Now that banks are moving on these properties that hidden stimulus will be pulled away.