I’ve heard and read from a few sources that the government specifically instructed the banks to withhold REO inventory from the market. This aligns 100% with what we’re seeing WRT interest rates, loan mods, govt backstops, and “the policy” stated above (the govt is determined to artificially prop up home prices).
What’s really needed is a lawsuit against the govt/banks for price-fixing and collusion because the govt is instructing the banks to act in unison in order to keep housing prices high. Unfortunately, we are not able to sue the govt (unless somebody knows something differen???).
