The Obama administration has apparently figured out what those of us trying to work short sales could have told them a long time ago, banks are making it incredibly difficult to deal with them.

So, they're being ordered to appear in person for a trip to the woodshed later this month, according to an article in The New York Times.

I'm thrilled to hear it, and not to suggest piling on, but that's exactly what every homeowner and real estate agent should be doing. In the next few weeks (the meeting is on July 28th) we should all be calling these banks (Office of the President) and letting them know that the administration has it right and they need to shape up. And, as long as you're at it, call the White House and let them know you agree with them on this issue.

Let's face it, none of us has much leverage on our own. But if each of us acted in concert with the White House on this, and if industry groups like NAR got behind it, there's a possibility that the force of our demands could produce some change.

According to an article in Sunday's New York Times, it's not just homeowners that are walking away.

Apparently more and more banks are deciding some properties just don't have enough value to be worth the foreclosure process. When you consider that NAR (National Association of REALTORS) has estimated that the foreclosure process can cost a bank $60,000, properties at the low end of the market quickly become more trouble/expense than they're worth.

Of course, if you're a municipality with vacant, deteriorating homes where no one is paying any property taxes, you've got a big problem.

We haven't yet seen much of this in our area. Prince William would, perhaps have been most vulnerable to this with their high volume of low cost condos going into foreclosure. But the prices fell fast enough and demand jumped enough that the problem has been dodged.

There seems to be no chance of seeing this kind of thing in Fauquier or Rappahannock Counties. Culpeper does have some foreclosed townhouses selling below $100,000. But the numbers are very small and there seems to be enough demand in that price range to absorb what comes on the market.