Bugs, Since all these properties were listed on the MLS why are the foreclosures(REO’S) taking proportionally much bigger hits? Is most of it due to the poor conditions of the property? Those kind of loses will pay for a lot of window screens, sod and paint. If it is caused by lender desperation then wouldn’t that be a good near term downside indicator especially with so many more foreclosures in the pipeline? I am trying to support or refute my theory that a big chunk of appreciation/equity is coming out of the market or will be very soon.
Thanks