tag:blogger.com,1999:blog-8529580665294663953.post6183407586869853558..comments2023-10-27T04:26:57.609-07:00Comments on InvestorCentric: Banks Believed To Be Holding Around 600,000 Foreclosure Properties Off MarketNuWire Investorhttp://www.blogger.com/profile/02512928198926080436noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8529580665294663953.post-85435031412889723112009-05-01T10:37:00.000-07:002009-05-01T10:37:00.000-07:00They have to hold them, otherwise their best guess...They have to hold them, otherwise their best guesstimates of loan portfolio values for their books blow up (as opposed to marking them to market).<br /><br />I'm a prospective bidder and I know the bottom isn't in. There are still way too many people in the market bidding on overvalued properties against the banks' shill bidders<br /><br />I'll pass.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-84583717480928683032009-05-01T06:49:00.000-07:002009-05-01T06:49:00.000-07:00Check out Ivy Zellmans comments on this, this is o...Check out Ivy Zellmans comments on this, this is only part of the issue. The banks are keeping the commercial developers on life support so they don't have to write down the assets. <br /><br />http://www.cnbc.com/id/15840232?video=1094393823&play=1<br /><br />That's thirty minutes away. I'll be there in ten.The Wolfnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-46659975738195087452009-04-30T20:46:00.000-07:002009-04-30T20:46:00.000-07:00My small business tanked last year along with the ...My small business tanked last year along with the economy. My husband had half of his hours cut. So we lost about 60% of our income over a 4 month time period. We haven't made the mortgage payment on our home since September of 2008. We have not received a formal foreclosure notice. Citi Mortgage says they have a loan modification offer on the way to us. They told us that about 2 months ago. Fedex has not arrived yet with those papers. I know of 4 other people in similiar positions as us. All 5 of us will most likely lose our homes. I just wonder how many Americans are sitting in these future bank owned homes like us. I think there is a crazy large number of inventory the bank has yet to list for sale. The home next to us is bank owned, and for sale. The sign went up 10 months after the family was evicted. That bank owned home next to me has 3 more bedrooms than my house, 1 more bath, 1500sf bigger than my house, and 18 years newer. Same amount of land, and is listed for $90,000 less than what I currently owe on my house. WOW I live in Southern California. We had a 6% fixed rate 30 year mortgage. No arms or legs or options. Just a regular good loan.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-46214480638940334972009-04-11T14:11:00.000-07:002009-04-11T14:11:00.000-07:00At unsustainabubble.com I have refocused on the sh...At unsustainabubble.com I have refocused on the shenanigans related to loan modifications in that blog and that topic relates to the shadow inventory problem because banks, servicers and investors are still not recognizing reality with respect to values in the bubble areas and have refused to reduce principal on over 97% of modification requests. While foreclosure may be the path of least resistance for lenders, producing less liability from MBS investors and resulting (on paper) in the highest NPV of all potential scenarios (Deed in Lieu, Short Sale etc.) The intransigence of the lenders toward principal reductions (regardless of the reasons, valid or invalid) and the tepid federal regulation requesting, but not mandating principal reductions is perpetuating a negative downward spiral in pricing in many areas of the country. I guess the law of unintended consequences applies but that seems to be the case with most of Obama’s initiatives anyway. Home Affordable is a joke in the bubble areas.<BR/><BR/>I am also a realtor working for a Broker who specializes in SoCal REO properties and we are now seeing shrinking inventories of REO’s, in part due to the moratorium and in part due to the other issues you mention. There are a ton of first time buyers looking for properties in areas where the price has retreated to a sustainable (2.6-3x annual income) level at the current subsidized interest rates. Any clean livable property sells in a few days with multiple offers over listing price (but not excessively over) . The banks take their sweet time about responding to offers and sometimes don’t respond at all. Since demand is high and supply is down, clean inventory is moving, leaving homes that are unbelievably filthy or poorly maintained sitting. They banks are only rarely investing in rehabs in our area. The house must be utterly destroyed to merit a clean-up to standards that will allow it to be FHA financed. Houses in working class areas that cannot be FHA financed do not sell. There is no rhyme or reason to pricing and I have seen two nearly identical houses in the same tract, one utterly destroyed by pets and filth and the other made pristine by the lender with fresh paint, carpet, tile, cabinets etc. both listed for the exact same price.<BR/><BR/>Eventually the shadow inventory will hit the market, but I do not believe holding it will keep prices up.Lance W. Newtonhttp://www.unsustainabubble.comnoreply@blogger.com