when are the banks going to release all the forclosures?

Asked by Puffy, Annapolis, CA Thu May 19, 2011

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Charlotte Sa…, Agent, Ellicott City, MD
Mon May 30, 2011
We currently have about 300 foreclosures in our inventory that are waiting to be released. Most of them had to be re-foreclosed because of "robo signing". From the behind the scenes activity with our asset managers, it seems that we will start to see them in the Fall of this year! If we can help, please let me know!
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Lew Corcoran, Agent, Easton, MA
Fri May 20, 2011
Most banks are still sitting on an inventory of foreclosed homes that are not yet on the market.

I don't think you'll ever see all of the foreclosed on the market at once for one simple reason: The economic law of supply and demand would apply. It's already a buyer's market - this means there are more homes on the market than there are ready, willing and able buyers. If the banks were to openly market all of the foreclosed properties at once, they would flood the market with homes for sale and thereby force home values even lower.

By holding bank on the inventory of homes, the banks are helping to slow or stop the free-fall in home values. As the market turns around and it becomes a sellers market, you may see more of the foreclosed homes come on the market - but at a controlled pace.
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Robert McArt…, Agent, Fallston, MD
Fri May 20, 2011
Puffy, I actively Auction foreclosed properties through-out Maryland. Bank of America has not begun new foreclosure filings in Maryland thus they have NOT yet been "released".
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The Roskelly…, Agent, Gambrills, MD
Fri May 20, 2011
Hi Puffy,

They are already being released. And to my knowledge there will be no mass flood. They release them as they are prepared. I wouldn't wait around for that though to make a move. Often foreclosures are priced above market and must "sit" active to test pricing. There are great deals in real estate right now. Keep in mind that someone who foreclosed is very likely a person that bought post 2004 or 2005 and the loan pay off is likely well above market value. The banks are going to try to recover as much of that as possible. Meanwhile there are homes actively on the market that Sellers are willing to negotiated on now!
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Robert McArt…, Agent, Fallston, MD
Thu May 19, 2011
Good question. I would keep looking at the paper of record in the jurisdiction you are interested in purchasing foreclosed properties. As you may be aware Bank of America is still working on their documents for the State of Maryland. Wells Fargo I believe has already started back up but may be some time before we see them actually be offered for sale at the court house steps then eventually become an REO. No one obviously wants to see any of this happen but in order for the market to correct itself, it must occur naturally.
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