SDR: Thanks for responding. I was curious, and thought I would ping you and get your sense of things.
I know, based on the bankers I speak with regularly, that the situation is bad as far as REO inventory goes. Further, quite a few banks are becoming overwhelmed with the volume of foreclosures happening right now. There has to be some sort of “point of no return” wherein the banks pull the pin and start dropping inventory at whatever price will move it.
From a regulatory standpoint, I have to believe many banks and lending institutions are going to start seeing their options narrow rapidly as regards reporting on non- and sub-performing assets. Whether or not this triggers the sort of death spiral we saw in Japan is anybody’s guess.
