While it seems like there may be more to the story because the banks have been stingy thus far, I think it is a sign of things to come with the banks. I’ve been tracking bank owned properties that have been on the market over 90 days and their numbers are increasing, albeit my info reflects only one zip code. They can’t hold out forever and they should be more informed than the average seller that there plenty more coming because they own them. The lenders are going to start getting nervous very soon and we will see more examples of drastic discounting on REO properties in the coming months.
