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Kawain Payne,…, Real Estate Pro in Long Beach, CA

Should the National Association of Realtors do something to lobby banks to release their shadow inventory?

Asked by Kawain Payne, Realtor, Notary, Long Beach, CA Fri May 17, 2013

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Personally, I'd like to see them do it in markets like Austin's which is showing signs of an overheating bubble economy. There are a lot of investors looking to pick up the kind of property the shadow inventory is typically made up of, and we don't have enough to satisfy demand. I've got three investors looking for property to purchase to fix up and rent and we can't find anything that is workable. The holding back of these homes is creating an artificial shortage, and there is no guarantee that there will be demand once they get around to it. The time to do it is now.
0 votes Thank Flag Link Sat May 18, 2013
I don't believe it would have a positive effect. The "trickle" approach seem to be working well and the market is beginning to take on its old identity.

The fact that banks are now taking "short sales" seriously and continues to do a timely release of foreclosures, in my opinion has and will continue to do more to restore the market than realtor organizations messing with something that, for now, seems to be working.......

My vote.....NO!

Respectfully,

Bill
1 vote Thank Flag Link Sat May 18, 2013
No. We are benefiting from the low inventory on the market right now. Houses are selling for higher than they would and we are picking up more listings because owners that were upside down are now able to sell.

If they release the shadow inventory then it will flood the market with homes reduce value if homes, days to sold will increase and your commission checks get smaller.

It's the economies of supply and demand. If the demand is limited like it is for qualified buyers if you have more houses than buyers then the price of houses goes down to attract a buyer. But if you have more buyers than houses then the buyers will bid higher for the house they want because choices are limited.

Chris Hutchinson
REALTOR®
The Michael Group
972.809.0607
http://www.chrishutchinsonrealestate.com
1 vote Thank Flag Link Fri May 17, 2013
KP,
No I do not think it's NAR place and even if they do I see no reason for the bank to comply. I'm not sujre thbere is all that many of those mythical "shadow inventory" homes.
Bill
1 vote Thank Flag Link Fri May 17, 2013
NAR is a powerful lobby, but they are no match for the bank lobby. The b(g)anksters will release their toxic assets when it is most profitable for them to do so.
1 vote Thank Flag Link Fri May 17, 2013
I would bet good money that the do!
It's just like them to do that.
1 vote Thank Flag Link Fri May 17, 2013
I am in Denver Co, and from everything I am seeing there is not shadow inventory. Just from looking around the neighborhoods I am in every day I am not seeing many vacant homes
0 votes Thank Flag Link Sat May 18, 2013
I don't think the lenders would listen to NAR.. I mean c'mon if the lender didn't truly help those who were in trouble, even after the bail out on top of having all eyes on them.. They still did as they pleased.

Truth is they don't have the man power to even begin to start releasing their shadow inventory. One bank I won't mention names has an entire floor of an executive building with boxes of files, from floor to ceiling, of foreclosures, waiting to be listed. The person in charge of going through those files, states they are just overwhelmed and understaffed. On top of the job cuts they had already seen as a result of the losses.

Releasing the shadow inventory would only drop prices even further.

Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Retired Mortgage Banker
http://www.everlastingcredit.com
0 votes Thank Flag Link Sat May 18, 2013
As I read other responses, I see we have a divided audience. Are we really benefiting from the low inventory? Will we benefit from another flood of REO? I guess the answer is right in the middle...can we get a vote in how they should release the inventory?
0 votes Thank Flag Link Sat May 18, 2013
No. Many markets are reaping the benefits of a low REO inventory and a number of sellers that couldn't sell before are finally able to do so.
0 votes Thank Flag Link Sat May 18, 2013
Good luck with that. They have to find the paperwork first?

Plus you have to think...most loans are probably not held by the banks themselves, but packaged up and resold to 10,000 different hedge funds and investors and mutual funds and foreign banks and who knows who else.

So I don't think it is simply a matter of passing a law...that's dangerous. You want to force a private investor to be forced to sell their asset at a time that is convenient and beneficial to who? You implement a regulation like that and the mortgage market could disappear. Investors might not want to take on that risk in the future.
0 votes Thank Flag Link Sat May 18, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
If they do this it would drive the price of property down & further depress the real estate market. Tough call!
0 votes Thank Flag Link Fri May 17, 2013
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