REO PRICES INCREASE

.kj

There goes that "shadow inventory" MYTH!! There are a ton of foreclosures for sure. There just IS NOT going the be a "flood" hitting the market. Why would the banks depreciate the market even further by releasing their "shadow inventory"? They will release them in a trickle and prices will go up, NOT down!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

True

GREAT article, it's been a while when buying started.
Raymond

I believe the trick is to find the "Shadow Inventory" before it hits the market. These are the houses the banks can't (or don't) advertise that they have. Since they are on their books but aren't being advertised, the bank may be willing to be a bit more generous with the price.

Just a theory, of course

Andy Sager
DG's AndyS
CFIC member

When it comes to REO's the banks just simply can not unleash a flood simple because of man power. There was a fear after the government (not trying to start a political talk) said to banks "do everything you can before you foreclose". It was thought that the banks were holding on to them and then when they were done trying they would have to release all of them at the same time. In actuality most banks were trying to do everything they could, and others changed the way they handled them but had to keep processing what they had. If you look back the foreclosure rate actually went up.