Maybe they figure a slow, downhill run is better than dumping it all on the market at once. Maybe they’re holding out so all the people responsible for this mess can jump out with their golden parachutes leaving the next generation of bankers on the hook. Maybe they want to create an artificial demand by reducing inventory (easy, since they hold much of the inventory). Maybe they don’t want their buddies in office to look bad so are waiting for the next administration to take over.
We the people are going to end up owning those homes if the FDIC takes over the banks with lots of REO inventory. If you have over $100k in a bank taken over by the FDIC, you get a share of the liquidated assets. So you do get something back, in this case it might be a house!!!
