Could this mean they are ready to open their flood gates?

CNBC B OF A article

Flooding the market, no matter the product, drives prices down. How is that good for the banks? I don't see it happening, at least not by design.

[url=http://www.northmyrtlebeachrealestatesales.com]North Beach Realty[/url] http://www.northmyrtlebeachrealestatesales.com

How can they tell which ones will sell and which wont? So by inventory holding back, is it assumed the one they hold back is will not sell faster than one already on the market not selling?

I work with a lot of banks I'm not easily convinced they are withholding properties intentionally from the market. Real estate is a wasting asset. Meaning if not maintained it deteriorates over time.

What about the economy and the market? Wouln't you say its better try and sell sooner than later?

What indication or guarantee is there, other than the spin of the media, that things are getting better anytime soon and not worse. Isn't it possible we could fall into a depression?

These are the questions I have to ask myself, you can chime in if you want.

A double-dip recession has been the talk of many economists. Roubini is one of the best.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ad4t9KriSQNE

Jim,

I think BOF's answer in the original article I posted is completely true, so many different factors come into play as to why the inventory is not as big as it was last year including govt. intervention with moratoriums and mandatory loan modification attempts before Lenders can start the foreclosure process.

I still think we are a long way off form any kind of recovery. I keep hearing about Sept. 15, 2009 as the last date of some moratoriums here in California in which the Lenders will start doing what they need to do to get rid of their bad assets.

Roubini is considered Dr. Doom, I think he is spot on right and I think I would listen to him before I listen to anyone else on the economy.

The theory that banks are going to release properties slowly in order to hold onto their value is premature in my opinion. Banks don't make money by holding onto real estate--they make money by making loans. They need to get rid of liabilities, no matter the cost, and put them into the asset column. Also, if they are able to push values lower with REO sales, their new loans will be safer investments because they will be on undervalued properties. If banks are looking at the big picture, they'll drop their REO inventory as soon as possible--which is what I'm seeing. The problem is that they just aren't foreclosing. BOA, and their subsidiaries, have seen a 70% drop in REO activity this year because of simply not foreclosing on homeowners. The talks of a recovery are pure fantasy right now.

Absolutely agree. If unemployment continues to rise (which it is and will) forget about any kind of recovery. The media is doing what it does best, spewing nonsense.

I agree with you both Dark and NorthTX. If the banks are holding back REOs there load of REOS will get bigger every week when more go to foreclosure. But I do tell you that here in my area it sure appears they are holding them back. ?They probably aren't, but it sure seems that way. Quite a few sold every week at the auction, but much fewer every week put on the market. In this area there has been an average of maybe 30 properties sold at auction for my county every week. But only about 15-20 come on the market every week. And usually it's only about 2-4 weeks after the foreclosure auction that they come onto the market.

2-4 weeks after auction is not that bad. I've had some in pre-marketing for up to 12 months before while the bank figures out what they own. Also, many are calling on FHA insurance which takes time. It takes even more time when FHA declines the insurance--which they are doing a lot of right now.

We are starting to see a trickle with the hope it is the beginning of the rush. When it comes right down to it their best option to move these properties is to get them to Realtors who know how to market REO and put realistic prices on them. We have a large number of agents who have automated the MLS to auto notify them when we put in a new listing. We usually get showings day one and are under contract in 14 - 21 days with multiple offers. Faster than an auction and multiple offers brings the highest price that any one is willing to pay at this time. The seller also gets that 5% premium the auction houses charge the buyer.

Has anybody been getting properties from B of A? I have only received a few properties in the last couple of months. I used to get slammed. This tells me that they are holding some of the properties back. I know my scorecard is strong and I have a good relationship with them. That is unless I did something wrong that I am not aware of. It will be interesting to see what happens in the last quarter.

Every asset manager who I talk to tells me it is extreemly slow. One girl who assigns properties for 11 states said last month she got only 10% of her normal assignments. No one knows when this will end as they keep pushing off the rush from July to September and now late fall. I sure hope for some new inventory as October looks to be terrible for closings!!

Banks can release at their own free will unfortunately. It drives the prices up and create a stockpile because of the trickle affect. In California the moratorium assist with this. Properties go up and it create a multiple offer situation sometimes overbidding to the point where the appraisal comes in too low to justify the offer.

I'm glad the statewide moratoruim will be lifted soon and maybe things will go back to normal (whatever that was). The lack of inventory is killing me...(shaking my head).

All this low down, easy money to absorb inventory and "help" the economy is only going to cause another housing bubble when more jobs are lost.

Lather, Rinse, and Repeat.