We have been watching housing in a neighboring city. A new house just came on the market with repossesion notices up in the window. The house is priced under everything in the neighborhood and is the 3rd cheapest house in the city, despite the fact that it is in a good neighborhood. It is priced to undercut everyone in an attempt to sell fast. When you start having a bunch of these, the prices will go down fast.
Lenders who find themselves with lots of foreclosed inventory and more on the way will be trying to unload as fast as possible. After the savings and loan debacle, you could buy land at unbelievable low prices.
When a lender goes under, what to they do with the inventory? Sell it as a bulk deal? The buyer gets it all for a song and can then sell each property at a heavy discount?
