[quote=spdrun]Why bother calling the FBI? Reduced comps are good for ALL buy-to-rental investors . Enjoy it while it lasts, and kick the bums out!![/quote]
The problem, spdrun, is that the “bums” aren’t “kicked out.” Many have been allowed to stay in “their” homes for free for 30-60 months. Then, instead of filing a notice of default, their first TD lenders try to do a “workout” with them. When that (invariably) doesn’t work, they are receptive to accepting a short payoff. The “bums” put their properties on the market in ANY condition because they DON’T CARE how much they get for it or how long it takes to sell it (remember, they’re living for free). After its finally sold, that “short sale comp” often comes out 20-60% lower than comparable neighboring properties are worth and sometimes just land value (as if the property was a vacant lot).
Piggs (as a microcosm of RE buyers in the general public) have been lamenting about lack of decent inventory to choose from for at least the last 20 months. The lack of inventory is a direct cause of too many recent sold comps from REOs and primarily short sales which were fraudulently sold FAR under what the property was worth … in ANY condition … and even FURTHER under build cost.
As a nearby homeowner to these shenanigans, if you didn’t HAVE to sell, would YOU put your property on the market with surrounding sold comps which were (often fraudulently) very deeply discounted?
