there, banks own them. this is great for me as a person who wants to buy a home now. the devil is in the details. first address who is to blame. when banks walk away from a house it s only because they don t think they re going to make any money. to go a look at what s the greatest loss here and that s motivating them and confusion in the courts who actually holds title to some property and until those issues get cleared up you ll see a lot of foreclosed properties sitting. one of the effects of that, is those foreclosed properties being, 2.9 million filings doesn t mean they took place, but a record of filing put things into foreclosure last year. imagine taking 2.9 million and won t be all of those, but take that whole number out of the supply of existing homes for sale and what you re really doing is decreasing the supply when you decrease the supply, when that happens, what happens, price goes up not down. could be for people who own their homes and aren t in foreclosure, you cou
it truly is a major issue in the housing market. jamie: and we ll talk about how it affects housing price and the stock market. closing above 11,000 at the end of the week and bank stocks not doing well and people should know, i would imagine, you would advise the banks could take a hit is a result and now the investigation is ongoing and they are stalling at least for bank of america, the foreclosures that they have planned, perhaps on the shoddy paperwork, why did bank of america do this, out of the good will of their heart or do they feel they have something the attorneys general and feds might find out they did wrong. it is hard to tell exactly why they did it but they saw a number of banks in a number of states and many attorneys general going after banks, and bank of america is one of the leading lender, in delinquent homes or homes that could go into foreclosure, we have to
foreclosures from what s being called as robo signatures, in one case, j.p. morgan chase, 18,000 documents, all signed by eight people in a month s time. it means no one is reviewing those documents. at the end of the day although they re going to stop and review the legal documents, is anyone in foreclosure going to keep their home? most likely not. eventually the foreclosures will go forward. jenna: let s pick up on that. a lot of people as you mentioned have been foreclosed upon or maybe in neighborhoods where you see foreclosed homes, how much time is it going to take to work through this? that s the question nobody knows. looking at it this way. we have an inventory houses right now according to the national association of realtors, 11.6 months of supply, that s double what it would normally be, a third of the homes sold recently were foreclosed properties. well, those properties now, which are in foreclosure, which will not be cleared, which means the inventory will continue to
reporter: there are two groups. both of which are looking for a bargain. according to the senior vice president, those two groups have been waiting on the sidelines for this opportunity. here is what he had to say. a third all home sales in the first quarter were foreclosure properties. primarily those gobbling them up are first time home buyers and investors. they are selling for 27% less than those that aren t in foreclosure. reporter: some of the hardest hit places in the country, they are selling for scowfnts up to 60%. the american dream is being built on the nightmare of others. megyn: thank you. coming up, new details on the early release after convicted terrorist and the role bp may have played to secure his
applied for a lease, the quid pro quo that they were expecting from the banks and less than 15% had any relief. that is what the criticism was about. that s where the inefficiency is. the banks are not moving, though they got paid off with cash, stock payments and low interest rates. time for them to make a move. david: what about the folks going back into foreclosure after they were so-called rescued? i don t want to speak about moral hazards, because i m sure quinton thinks i m a moral hazard myself. you re a great guy! we re creating house problem. just wrong. obama borrowed money to support mortgages and now they want to propose and actually go out and even with people that aren t in foreclosure have the f.h.a. through our taxpayer dollars write down the principle of mortgages and pay off banks. this is a huge, huge hole in the economy. david: steve, where does it end? that is the thing. this will hurt the recovery in the housing market so the