[quote=AN]I’m not denying that the government can greatly manipulate the market. I’m just trying to understand the logic behind why banks are holding back inventory (especially when the market is showing that there are enough buyers out there right now to absorb more inventory). You’re saying decision-makers are the one that’s holding back supply. Are there many different decision-makers at a bank? If yes, then it make sense why some houses get hold back by BofA but other houses, BofA foreclosed on and put it on the market. If no, then I don’t understand why they would foreclose on some but not others.[/quote]
[quote=analyst] That is why you see such wide variety in the handling of individual mortgages. Each separate combination of servicer and beneficial owner is a separate discussion/negotiation. [/quote]

Bank of America is one of the three largest loan servicers in the country. It deals with many different beneficial owners of the loans it services. The borrowers may only see the name Bank of America, but the beneficial owners are the decision makers (in the cases where options exist).