Bay Area

[ChuckMellow]

I've been told by several people that banks are slowly releasing foreclosures to avoid flooding the market with homes and driving down prices. If you look at the rate REOs come on the market this is obviously true. I'm also hearing though that because of the amount of foreclosures they can't sustain this strategy because it's becoming too costly to hold them and that they're going to start putting them on the market at a faster pace. Anyone else heard anything like this? Our realtor told us it costs banks $150/day to hold a foreclosure.

[hamstar]

REOs are dribbling out, but not because banks want to.  They are just understaffed and have so much work to do they can't get everything on the market fast enough.

The Merc said that it seemed the most banks could process in a month was like 40-42,000- nationwide.

An agent that sells REOs said that she gets banks packets within 48 hours for their approval to put a house on the market, and it takes them 2-3 weeks to get back to her.  They are just so busy they can't keep up.

And honestly, that makes much more sense to me than holding back, given that REOs are receiving multiple offers all over the Bay Area at this point. 

[CityofReo]

Honestly I just clicked on this thread because the name was so curiosity-inducing. I'm sure there's a suspect real estate joke there somewhere to be made, but I'll keep it free of my twisted humor around here.

Thanks for sharing your ideas about real estate owned sales, and keep on coming up with such amusing titles!

Cheers,

Brian

Message Edited by ChrisG on 06-18-2009 12:48 PM

[begin]

hamstar wrote: "REOs are dribbling out, but not because banks want to.  They are just understaffed and have so much work to do they can't get everything on the market fast enough."

Hmmmm -- I hear there are a few people looking for work.  Maybe the banks should increase staff?

[sgnese]

I guess it depends on what area you're looking at.  The one i'm interesting in, Santa Teresa, does not have any new REO going on the list since April.  I don't know if this is bank holding back or just doesn't have any to list.

[TomP]

How can you have so called multiple offers pushing higher prices

when the sale prices are well under askings , and the GAP is growing?  

Only the REA like to make you think there are multiple offers !!!  

Look at the asking and sales prices differences...its 10% difference... 

http://www.redfin.com/city/17675/CA/Santa-Clara-Santa-Clara-County-CA 

[bayareanewbie]

I've wondered about that gap as well.  But, as far as multiple offers goes, I know this is happening as we have been outbid more times that I like to admit (and we often offer over asking price).

[TomP]

" I know this is happening as we have been outbid more times that I like to admit (and we often offer over asking price)."

Can you confirm that with names, contact #  and amounts ?

Do you want someone to be pulling an "Enron" on you ?  

[bayareanewbie]

So, what are you implying?  They took the house off of the market after we made an offer because they thought they might make more money from us by telling us that we have been outbid and to look elsewhere?  Obviously, they are not giving us names/numbers...that would be illegal.  The bottom line is that myself and my brother-in-law have both been looking to buy a house for the past 3 months and have lost more than a few to "better offers".  Not sure how you are attempting to explain this.

[TomP]

"Obviously, they are not giving us names/numbers...that would be illegal."

Far from it!  Nothing illegal allowing the marketplace to be fully transparent...

 "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion." 

As any good auditor would say... get confirmation.  How can you have a meaningful transaction when the transaction is one sided where in your the dark regarding prices?