[quote=CA renter]Yes, many REOs have been made available to Jane and Joe Sixpack, but most of the best deals were reserved for institutional investors with connections. This was a regular complaint heard from other investors — many with deep pockets — during the RE collapse.[/quote]
I can not speculate if the best deals were reserved for institutional investors with connections. I think it will be futile getting upset for having to pay $200 retail for a suit in a place like Nordstrom, when the garment was purchased for $20 from the supplier. IMO one can not contrast a consumer’s buying power to large entities. As a consumer if I want the $20 price I need to hit the ground (with sufficient cache) to identify the supplier or even better the seamstress (possibly in SE Asia). As for investors complaining about lack of deals may be they are groups (with deep pockets) who entered the market late in the cycle.
My earlier comment about bank reo’s was to clarify your statement that folks who were willing to work on foreclosures were excluded from purchasing the best deals. I have come to know some of the more adventurous six-packs who went to court houses, met people, joined lists, bid on auction sites, pooled funds to find their deals. During the crisis I was fortunate to purchase a bank owned move-up house through MLS (ty redfin!). If my purchase were the norm, I am least bit surprised that the lenders were willing to sell their properties in bulk to anyone who would take it off their hands. The property was listed as an as-is fixer w/ no appliances, when we saw the property it was rat infested and during the escrow the maintenance workers stole the heating and a/c unit, and ripped any visible electrical and copper plumbing/fixtures. Oh! I forgot the house was vandalized. From this description one might mistake the property is in a bad neighborhood, only it isn’t!
Any case I have reconciled to buying my suit at retail :-). I believe one can still find RE at discounted price for current market through one of many RE related forums on the web. Happy House Findings!
