Undoubtedly. The new law prohibiting a foreclosure to go forward after an offer on a short sale has been accepted will be gamed to some degree.
I don’t think it will be a big problem, the lenders are pretty good at processing short sales these days. The seller takes a somewhat smaller hit to their credit with a short sale, they may be able to stay in the home a month or so longer, and that’s about it.
It will be a bit more costly for the lenders when short sellers wait until a week or two before the scheduled action to list their homes, but they will still do better than if the home had become an REO.
I don’t have any sympathy at all for the lenders, I do have some sympathy for humans in dire financial circumstances. And make no mistake about it, the vast majority of people facing foreclosure are in bad shape. There are probably the equivalent to “Welfare Queens” driving new Cadillacs , I haven’t encountered them. And no one I know in the business has. Sigh. A few Bankers sentenced to 25 to life might make me less sympathetic to ordinary people having rough times, but I doubt it.