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Ray submits: Apparently I was wrong about the impact of foreclosures when I said that banks were holding onto the properties and not placing them on the market. It came to light via Diana Olick, who I respect at CNBC, in a report yesterday. It is not that banks are simply holding onto the properties, they are just so backlogged that they cannot get them into the market fast enough. According to the report, banks are waiting as long as possible to try keeping people in their homes by using the Obama 'Making Home Affordable' plan. Unfortunately, people cannot simply refinance when they are unemployed or underemployed which is the primary problem now. Bank of America ( BAC ) told Diana that since most of the properties are owned by third party investors, the bank has an obligation to place

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