Fredo4 asked for predictions so out with the witchcraft or whatever you happen to rely on to make your “predictions”.
Fredo4 on this forum you will always get the same answers from the knifecatcher crowd. Which is that they got a smoking deal, the bottom is in, RealtyTrac and every other foreclosure service is just wrong, unemployment does not matter….basically desperate sounding attempts to twist every bit of horrible, horrible RE market realities to positive.
From your thread topic I can see that you are aware of coming foreclosures and market manipulation. Trust what you see and what common sense tells you. Yes they are only letting a trickle of REOs out onto the market and the inventory is piling up behind a dam that can’t hold forever.
Where we are now is we had a giant subprime meltdown and the banks are selling a few of those REOs but keeping more. Add to that the current and coming foreclosure waves and bleak turns uber-bleak.
They can’t sell all the REOs because they would reveal themselves insolvent (they still get to keep that $450k REO as a $450k asset on the books until they actually sell it for $200k, then they book the loss).
Prediction? I think we just need to wait for the RTC2 to finally reveal itself, take the REOs off the bank books and then it will be a fast and furious absolute auction like seen in RTC1, and then we will see some really good prices.
Until that happens lots of too eager folks will tell themselves anything to justify snatching the knife on its way down.
