SD R, I posted about how angry the loan mods make me, primarily the “principal reduction” crapola. I even posted about PennyMac in the other thread, they are a potential customer of my company, that’s how I found out about them last month. And the more I think about these bulk purchases, the more I realize that the main problem here is simply that the comps are not being well publicized. That’s what needs to happen here. Someone with the energy needs to make a web site that discloses the prices paid at these bulk sales, so that future buys know the real value, or at least have a sense of where the floor is.
Still, the concept of buying in bulk and selling one-at-a-time for a slight margin is hardly new, hardly unethical, and not the real problem here. The problem is buyers of non bulk properties getting bad comps because they are only seeing one source, only seeing half of the actual sales. Really its the appraisers that need to get hip to this scene.
