The latest strategy of banks is to slow down the foreclosure process. It helps them to keep their books look better and thus creating a better impression for the investors and regulators. But the delay is lingering the pain of the house owners who remain in a state of limbo. The sellers are also unable to find buyers.

Foreclosure postings dropped in April from what it was in 2010. There are two reasons – the banks have temporarily suspended operations following the eruption of the robo-scandal and secondly because the banks do not want to flood the market with the shadow inventory they are sitting on.