Short Sale Merry-go-round

It has often been said that once a process, story or other investment activity becomes headline news then the activity is dead.

Is this the case with the short sale?

One starts to wonder what is in the mind of the Whitehouse with a process like this:

http://www.idontliketowork.com/2010/guidelines-aiming-to-ease-short-sales/

The concept on the surface ‘seems fair’, my challenge is with the investors and the future of the mortgage marketplace. With a precedent set like this it will not be in anyone’s interest to ever bother with a loan secured by residential real estate. The power of foreclosure will be lost and thus the ‘security’ factor removed increasing the risk.

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