[quote=jpinpb]To be a stickler, the article is slightly deceiving. It states:
“Bottom line – there is
no “shadow” inventory of bank owned homes being intentionally withheld from the market.”
Since there is an endless amount of NODs that the bank is not acting on, technically, they don’t own them yet. That’s not even address the NODs that banks aren’t even bothering to file on places that they haven’t received mortgage payments on for months.
Again, as I’ve said on other threads, the inventory is there, but in limbo. The question is how it will get absorbed or (sdr) disposed.[/quote]
That is the million dollar question. I think I figured out the reason for the hold up. Once the banks foreclose on it they have to take the loss. The reason they don’t foreclose is because of accounting rules. They do not have to count it that way and can let it sit forever without taking a loss. The problem is they are coming back too fast, so they are bottle necking. How long that can go on. Who knows.
