As a broker who lists property for several banks including Wells Fargo and having done so since 2007, I would probably have to say it depends on several factors including the financial institution and the region. Currently in San Diego, CA, there are only a handful of institutions actively processing their foreclosure inventory. Those institutions being, Aurora, HUD and some Bank of America Loans, other banks such as Wells Fargo, Chase and some other institutions have not been as active. Now in California we are a non-Judicial foreclosure state, so we typically have shorter foreclosure processing times then other states such as Florida or New York. So the lack of foreclosures may have to do more with the legal gauntlet that a lot of these foreclosures have to go through. Also keep in mind a lot of foreclosure processes were halted due to various programs and new procedures. A couple key ones being Hope for Homeowners, HAMP and the situation that recently transpired with MERS. Whenever one of these new programs or situations occur they typically have to restart the whole process across the board. Now as how this pertains to your question, the banks are more worried about releasing too many foreclosures at the same time more of an accounting issue than a supply issue. As long as the property is not foreclosed or completes a Notice of Trustees Sale (here in California) it is still counted as a Accounts Receivable. As soon as the property is foreclosed and sold it is considered a loss from the original loan amount. Again as most of these banks are publicly traded institutions none want to consistently huge losses on their books every month. Now I cannot speak for all the other markets, but there are still buyers in our market and in some local markets enough demand where we have seen increases. The banks may try to withhold some inventory from weaker markets but when it is feasible they are very prompt in the trying to release the inventory that can easily be foreclosed. My best guess is that foreclosures will be like a game of red light, green light for the next couple years as banks try to match releases of inventory with each other.
Realtor/ Licensed Broker
Wakita & Associates
Realty World West
All of the previous agent/brokers/lenders have answered correctly. The banks are letting foreclosed homes out on a systematic basis to keep some lid on FAIR PRICING. In some ways, they may be moving slowly to let values perhaps go up in time. Homes with pay-offs/current mortgages of $115,000 are selling for $45,000 in some instances and a builder could not even build them for less than $75,000. Hello....are you getting this message! (In fun, but serious)
Keep in mind, This is a good time to buy. If you get a loan, rates are below 5 percent (don't even wait for them to go down.....THIS IS DOWN) with 30% to 50% off home values and very low rates it is a great opportunity to get a home. Even if values drop a little bit more, you should come out OK in the future market rebirth.
Warning, do not expect to low-ball the banks over 5% or so off current prices. They are already very low.
We have to realize this hugh drop has just about destroyed all the NON-FORECLOSURE home values and your friends, family and others are just plain stuck in their homes. (Yep, not your problem) Banks want this to be over and all those upsidedown people do as well. This is the only way our economy can return to REALITY. Otherwise, we all will be forced into "mediocre" lives.
Do not be greedy (not saying you would) as some think the banks are at present with the US government and Mortgage Insurance companies helping with their losses. BE SMART......buy now with good pricing and great interest rates. Just find a home you really like and an agent who has YOUR best interest at heart!
Ken Guillen, Associate Broker, Certified REO Specialist
Casey and Associates Realty
Many banks got into trouble with the federal government for robo-signing properties for foreclosure. This means that they did not thoroughly research the properties before foreclosing on them and just signed off on the documentation.
There were numerous properties in question on this issue. Now the banks have them and are suppose to be trickling them onto the market so that they all don't go on the market all at once which would lower home values even further.
Hope this clarifies.
Prudential Connecticut Realty
On the other side of the coin, lenders want to recover their losses as much as possible. Many of the REO sales over the past year have been way below market as Ken Guillen stated earlier. Lenders realize that property values are increasing. If they sit on their REO properties a little longer before putting them on the market, they stand to recover more of their losses through market appreciation.
Additionally, short sales and loan modifications have served to greatly reduce the amount of foreclosure filings.
BTW... Do you know who gets first dibs or homes when they are sold? The elites! Whatever scraps they don't want, they throw to the rats (peasants) and have the rats fight over it.
I had one realtor tell me he wasn't going to submit a low ball offer. Why not? Because he wants the rats fighting over the scraps. Who's going to bail them out? Who else, the ratty tax payers. Is this fair? Of course not.
Don't rent from the Elites. Let their homes rot and be empty. Rent from apartment communities. If you don't - you'll never be able to own your own home.
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Hank's succinct answer got my thumbs up.
You Have already received some very good reasons. None of us Realtors really know the exact answer to your question. There are many banks and lending companies involved in this process plus government. My question to you; are you interested in a certain home that has not come back on the market as a foreclosure or do you know of a home that should have been in foreclosure? If this is your question please contact me. I'm sure I can help you find that answer.
I look forward to hearing back from you.
Have a Good Day,
Rick Payne Keller Williams Realty 678-427-5512 and email firstname.lastname@example.org
What I know on this count is what I read in the newspapers. The banks were figuring on moving more property off their books this year. The forecast for this years was for home sales to begin slowly but pick up in the second half. I recall a Los Angeles Times article quoting some lenders as saying they were planning to move more foreclosure properties.
With 900,000 homes to sell, and more coming, the lenders have to take care that they don't swamp the market. Selling too quickly creates problems. It's ironic that a few years ago, selling 2 million to 3 million homes would not have been thought of as that challenging. In 2007, builders were building 900,000 homes a year.
The money to lend has to be there as demand picks up for real estate. So, it is interesting that the REO properties will wait for days when money is not so tight.
I hope you get the home of your dreams.
PML of Longmont, CO
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Junper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Conventional | FHA | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® |
HomePathÂ® Renovation | VA | USDA | GA Dream
Forget the shadow, get the real inventory. Buy the homes 'made available' now. That's all we have to sell and buyers have to compete for. See how many multiple offers we have? How many of those are over priced by buyers in other to win the bid. Banks love that war. See them smiling to get $5k over asking price.
One more thing. Why should everyone buy now? Many buyers will not buy now because more homes will be 'released' later.
It's a controlled system. By banks, not government. It's one remote. The banks have it. We are just watching their choice channel.
Yes the answer is a simple function of supply and demand. If you increase the supply of foreclosed properties all homes on the market will fall in value, hence banks are slowly releasing homes onto the market to maintain some semblance of price stability.
Timothy Brown | President
Academy Residential Mortgage, Inc.| email@example.com
11380 Southbridge Pkwy, Suite 200 | Alpharetta, GA 30022
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959