The big banks and finance houses wounded housing. We all know this. But the real tragedy is that they continue to hurt housing.
Bank of America is now talking about their losses in housing. Consider this. First they do not modify enough loans. And even if you are in the middle of a modification with a bank there is no guarantee that the foreclosure arm of the bank will stop and not take your house.
Second these folks put the homes back on the market at terribly low prices. So what happens? The regular folks in a neighborhood cannot sell because now their homes do not appraise. Chances are in this market if you are trying to sell you NEED to. So you cannot sell and end up in foreclosure , because you couldn't get modified. Your home comes back on the market at a ridiculously low price. The bank loses on the mortgage, other sellers cannot sell due to these foreclosures , so they go into foreclosure , and the beat goes on.
WAKE UP ! As long as banks fire sale homes we will never get out of this mess. The banks that drove the values up and created the bubble are now driving the values down !!! I am not sure which is worse.