SD Realtor said: “One common theme is that in all of the cases be it short sales or REO properties there seems to be severe reluctance on the part of the bank to negotiate. It is disappointing.”

Could it be that it’s still early? I wonder how these are counted for on their books, and what those bankers’ incentives are at this point. They can be rewarded for two things: a) value sold (hence their strong negotiation stance); and/or b) % of such assets disposed (if the amount of foreclosure increases and time drags on)… my sense is that it’s still too early.

I guess in spring we’ll really know what shape the SD real estate market is in.