[quote=paramount]Banks are keeping a large number of foreclosures off the market to create a sense of scarcity.[/quote]
This is an absurd notion. The lenders (most of whom are not banks, by the way) want to get properties listed and sold as fast as they can. The problem is they lack the manpower to handle the volume.
Are some servicers stickier than others about lowering foreclosure sale prices to a market-clearing level? Sure. Are some moving a little slower than others in hopes of an expanded “bailout for homeowners?” Yeah. But, for the most part, they just don’t have the personnel or decision-making structure to deal with the volumes. That’s the crux of the problem.
Trust me, there’s no one on the planet who is under any illusion about scarcity of properties available. You cannot be serious.
