crazyob brought up a good point on the Foreclosure onslaught continues thread:
[quote=crazyob]I wonder if the banks have stopped selling their homes and even pulling ones from the market that were from sale. This all started two weeks ago when the new “mark to market rules” were approved. Within these new rules a bank can claim their home that was bought in 2006 for 500k is still worth 500k on the books, if they sold it they would need claim the loss of the last couple of years more like $375k.
That being said why would a bank sell a forclosed property? I think in the next couple of months you will see more and more empty unkept forclosed homes, NOT FOR SALE, bringing more blight to neighborhoods, Thanks Banks!
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I think he may be on to something, as I posted:
Maybe all these NODs on places are either going to be re-worked or sold in bulk, not ever getting listed. M2M.
So the next question would be what the M2M will do, then. Are they going to rent all of them? I mean, rents are already declining and I just don’t see it. If banks re-work half (being optimistic) and the M2M rents what they get, renters will be in a great position for bargains.
I’m not understanding the M2M very well. I’m thinking if there’s a loss to those who buy bulk from banks, they are also covered by the taxpayers. So, no skin off them. They can just list them, too.
Once again, I think this is going to be a long, drawn out process and the places w/NODs from last month, won’t get to market until end of year, and accordingly for every month thereafter.
