So, where are all the foreclosures?

[Oxford]

Our own Rich Toscano raises this question in this article:

http://www.voiceofsandiego.org/toscano/
“Housing Demand Grows While Supply Shrinks — Except for Those Foreclosures?”

He doesn’t know the answer and neither do I.

Could it be a mass collusion of banks to keep foreclosures off the market and ease them back in so to not to put housing prices in a death spiral? How long can they wait? What will it eventually mean to the housing market and the economy.

We are seeing active springtime home buying and low interest rates. The low end is getting snapped up and other mid/high inventory is low. There seems to be a “sense of recovery” in the air (well, to me). But is this all an illusion?

Is the other shoe about to drop HARD in the form of withheld foreclosures? What then?

Pigs, wallow forth please with your wisdom.

Ox
…more questions than answers”

[SD Realtor]

Be patient Ox and they will come.

[SD Realtor]

Be patient Ox and they will come.

[SD Realtor]

Be patient Ox and they will come.

[SD Realtor]

Be patient Ox and they will come.

[SD Realtor]

Be patient Ox and they will come.

[Oxford]

[quote=SD Realtor]Be patient Ox and they will come. [/quote]

ummm. I know that. And the effect will be…? And when?

ox
…is that a light, or another train?

[Oxford]

[quote=SD Realtor]Be patient Ox and they will come. [/quote]

ummm. I know that. And the effect will be…? And when?

ox
…is that a light, or another train?

[Oxford]

[quote=SD Realtor]Be patient Ox and they will come. [/quote]

ummm. I know that. And the effect will be…? And when?

ox
…is that a light, or another train?

[Oxford]

[quote=SD Realtor]Be patient Ox and they will come. [/quote]

ummm. I know that. And the effect will be…? And when?

ox
…is that a light, or another train?

[Oxford]

[quote=SD Realtor]Be patient Ox and they will come. [/quote]

ummm. I know that. And the effect will be…? And when?

ox
…is that a light, or another train?

[blahblahblah]

It’s not mass collusion — it’s just that putting all of those foreclosures on the market would be financial suicide for them. They know that if the market is flooded with foreclosures, that will push home prices down which will in turn devalue all of their mortgage “assets” which will then mean that they’ve got a lot less money than they think they do. It’s a bad situation.

My guess is that they are waiting to get bailed out; they will battle to see who can become the biggest before they eventually implode because they will all want to be “too big to fail”. When they get bailed out for their losses then they might start unloading them. Or not — perhaps they’ll open new property management wings and just turn them into rentals and enjoy the rental income.

My bottom line take on this situation is that as long as bailout money is being thrown at this situation and as long as the government is involved, it is impossible to determine the real value of these assets. Would you want to buy something that you don’t know the real value of? I wouldn’t…

[blahblahblah]

It’s not mass collusion — it’s just that putting all of those foreclosures on the market would be financial suicide for them. They know that if the market is flooded with foreclosures, that will push home prices down which will in turn devalue all of their mortgage “assets” which will then mean that they’ve got a lot less money than they think they do. It’s a bad situation.

My guess is that they are waiting to get bailed out; they will battle to see who can become the biggest before they eventually implode because they will all want to be “too big to fail”. When they get bailed out for their losses then they might start unloading them. Or not — perhaps they’ll open new property management wings and just turn them into rentals and enjoy the rental income.

My bottom line take on this situation is that as long as bailout money is being thrown at this situation and as long as the government is involved, it is impossible to determine the real value of these assets. Would you want to buy something that you don’t know the real value of? I wouldn’t…

[blahblahblah]

It’s not mass collusion — it’s just that putting all of those foreclosures on the market would be financial suicide for them. They know that if the market is flooded with foreclosures, that will push home prices down which will in turn devalue all of their mortgage “assets” which will then mean that they’ve got a lot less money than they think they do. It’s a bad situation.

My guess is that they are waiting to get bailed out; they will battle to see who can become the biggest before they eventually implode because they will all want to be “too big to fail”. When they get bailed out for their losses then they might start unloading them. Or not — perhaps they’ll open new property management wings and just turn them into rentals and enjoy the rental income.

My bottom line take on this situation is that as long as bailout money is being thrown at this situation and as long as the government is involved, it is impossible to determine the real value of these assets. Would you want to buy something that you don’t know the real value of? I wouldn’t…

[blahblahblah]

It’s not mass collusion — it’s just that putting all of those foreclosures on the market would be financial suicide for them. They know that if the market is flooded with foreclosures, that will push home prices down which will in turn devalue all of their mortgage “assets” which will then mean that they’ve got a lot less money than they think they do. It’s a bad situation.

My guess is that they are waiting to get bailed out; they will battle to see who can become the biggest before they eventually implode because they will all want to be “too big to fail”. When they get bailed out for their losses then they might start unloading them. Or not — perhaps they’ll open new property management wings and just turn them into rentals and enjoy the rental income.

My bottom line take on this situation is that as long as bailout money is being thrown at this situation and as long as the government is involved, it is impossible to determine the real value of these assets. Would you want to buy something that you don’t know the real value of? I wouldn’t…

[Author]

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