Escrows Falling Out? The Disparity between Pending Home Sales & Closed Sales could point to the Cause

The disparity between the recent increase in the National Association of REALTOR's Pending Home Sale Index and the recent decrease in home sales is articulately explained by Lawler
http://www.calculatedriskblog.com/2012/08/lawler-on-relationship-between-pending.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29, and further explains why so many REALTORs across the United States are witnessing homes falling out of escrow.

Is this due to the new Fannie Mae & Freddie Mac Regulations for Short Sales being instituted on November 1st, 2012? Are banks now preferring to foreclose on homes and are therefore cancelling their short sale escrows intentionally? Do lending institutions see foreclosed properties as more valuable assets now that we have seen national housing prices continually rise? Could banks be assuming that they can now net more proceeds by re-selling foreclosed property than unloading distressed property through a short sale? Only time will tell, but the remainder of 2012 poses many real estate questions that will soon be answered.