I think for the low end the “flooding” of the market was 2007-2008 for REOs. I could be wrong but I am currently buying anyway, so I have placed my bet.
I also want to take the opportunity to vent about the REO process as I see it. In general it appears most lenders are not taking offers unless you use a predetermined lender of their choice to do the pre-approval. I don’t even know how this is legal but apparently it must be since it is the rule and not the exception. I played the game for one property but then decided I was done. If my current pre-approvals were not enough to get into escrow I wasn’t interested. Even with 2 current pre-approvals from different lenders, BofA still demanded I get a pre-approval from BofA. I refused and vowed to never do any business with them if I can avoid it. There is no reason I should have to have my credit run by a different company each time I simply want to make an offer.
My other observation: Fraud, Deceit, and Misrepresentation appear to be the norm for real estate transactions, at every level of the process. There is no transparency. There is no honest market.
