Banks are enjoying the market's recent strength as collateral value returns to back their bad loans. Homeowners who aren't distressed don't mind either, but it's the banks that benefit the most from the current situation of restricted MLS supply. To further restrict supply and really get prices to shoot upward, banks stopped foreclosure processing on May 6, 2013. Ostensibly, they did this for procedural reasons related to new regulations, but this is simply a ruse to cover their real intent of forcing prices to shoot up even more rapidly to help them avoid more losses when they finally do liquidate their bad loans.
Sales of homes in foreclosure by Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup[READ MORE]