Two large lenders kowtowed to Barney Frank’s, the chairman of the House of Financial Services Committee, desperate plan to kickback the completion of foreclosures.

first tuesday take: With upwards of 800,000 trustee’s sales to come in California alone during the next four to five years, this action to delay foreclosures only extends the inevitable. Delaying foreclosures makes no economic sense for the California real estate market which must clear itself of excess housing before prices will stabilize and normality returns. [See “Investor Report: Four Unit Limit” article from Homes101.com]

Congressman Frank’s strategy to give a temporary reprieve to failed homeowners is a perfect example of improper congressional interference within the marketplace. The homeowner needs a job, a better paying job, a loan cramdown, or is a tenant at heart who should not have been put into homeownership.

Re: “JPMorgan, Citigroup halting foreclosures,” from yahoonews.com

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