So, where are all the foreclosures?

[jpinpb]

All I can say is the other day I went through my 10 ZIP codes (92109, 92027, 92110, 92106, 92107, 92103, 92104, 92116, 92122, 92130) of NODs/foreclosures and marked them on SDL.

I didn’t mark condos in all the ZIPs. I didn’t write how many NODs/foreclosures they were, but I’ll say comfortably that 9 out of 10 NODs/foreclosures were not listed for sale, not even attempting to sell, not trying to do a short sale. Nothing.

I’ve been marking NODs/foreclosures on SDL for over a year. Last year about 9 out of 10 were for sale and the one that holding out would eventually list and/or just be taken back by the bank and immediately go to sale.

I am perplexed by the low inventory w/the high NODs. I do not know what to make of it. I wonder if it is intentional. I wonder if the banks just unloaded it M2M and now we will have to wait to see what the private investors do. I wonder if all of them are in the process of loan mods. It’s quite voluminous.

The inventory is 13k something and even if half the NODs in the past three months were listed, we’d be looking at over 15k of listings.

[SD Realtor]

JP what you are seeing is the DIRECT result of the several policies that are in place. We have always seen posts saying that these policies will have no effect, that they will just amount to being seperate drops in the bucket.

We can only hope that these properties do make it to the market. However if they can dribble out, and be spread out over several years then the government will have been successful in controlling the inventory within the housing market. Another big question is what will the GSEs do. Arraya made a very good point.

Yes this may also mean that people who overextended themselves will get rewarded.

The problem is and has always been an egregious underestimation of what the forces of Wall St can do. All we can do is hope that they are overwhelmed with inventory and that the private entities that take all of the assetts off the banks books will dump them.

I guess we will see. I am hoping for that to happen.

[SD Realtor]

JP what you are seeing is the DIRECT result of the several policies that are in place. We have always seen posts saying that these policies will have no effect, that they will just amount to being seperate drops in the bucket.

We can only hope that these properties do make it to the market. However if they can dribble out, and be spread out over several years then the government will have been successful in controlling the inventory within the housing market. Another big question is what will the GSEs do. Arraya made a very good point.

Yes this may also mean that people who overextended themselves will get rewarded.

The problem is and has always been an egregious underestimation of what the forces of Wall St can do. All we can do is hope that they are overwhelmed with inventory and that the private entities that take all of the assetts off the banks books will dump them.

I guess we will see. I am hoping for that to happen.

[SD Realtor]

JP what you are seeing is the DIRECT result of the several policies that are in place. We have always seen posts saying that these policies will have no effect, that they will just amount to being seperate drops in the bucket.

We can only hope that these properties do make it to the market. However if they can dribble out, and be spread out over several years then the government will have been successful in controlling the inventory within the housing market. Another big question is what will the GSEs do. Arraya made a very good point.

Yes this may also mean that people who overextended themselves will get rewarded.

The problem is and has always been an egregious underestimation of what the forces of Wall St can do. All we can do is hope that they are overwhelmed with inventory and that the private entities that take all of the assetts off the banks books will dump them.

I guess we will see. I am hoping for that to happen.

[SD Realtor]

JP what you are seeing is the DIRECT result of the several policies that are in place. We have always seen posts saying that these policies will have no effect, that they will just amount to being seperate drops in the bucket.

We can only hope that these properties do make it to the market. However if they can dribble out, and be spread out over several years then the government will have been successful in controlling the inventory within the housing market. Another big question is what will the GSEs do. Arraya made a very good point.

Yes this may also mean that people who overextended themselves will get rewarded.

The problem is and has always been an egregious underestimation of what the forces of Wall St can do. All we can do is hope that they are overwhelmed with inventory and that the private entities that take all of the assetts off the banks books will dump them.

I guess we will see. I am hoping for that to happen.

[SD Realtor]

JP what you are seeing is the DIRECT result of the several policies that are in place. We have always seen posts saying that these policies will have no effect, that they will just amount to being seperate drops in the bucket.

We can only hope that these properties do make it to the market. However if they can dribble out, and be spread out over several years then the government will have been successful in controlling the inventory within the housing market. Another big question is what will the GSEs do. Arraya made a very good point.

Yes this may also mean that people who overextended themselves will get rewarded.

The problem is and has always been an egregious underestimation of what the forces of Wall St can do. All we can do is hope that they are overwhelmed with inventory and that the private entities that take all of the assetts off the banks books will dump them.

I guess we will see. I am hoping for that to happen.

[Allan from Fallbrook]

SDR: Wouldn’t you also say that logistics is playing a part, too? Meaning, the banks aren’t really staffed to handle the REOs portfolios they have.

Combine that with the fact that, when the banks auction properties off, they rarely sell and the banks wind up buying them right back. If they were to release the bulk of their inventories, the impact on pricing would be horrific.

[Allan from Fallbrook]

SDR: Wouldn’t you also say that logistics is playing a part, too? Meaning, the banks aren’t really staffed to handle the REOs portfolios they have.

Combine that with the fact that, when the banks auction properties off, they rarely sell and the banks wind up buying them right back. If they were to release the bulk of their inventories, the impact on pricing would be horrific.

[Allan from Fallbrook]

SDR: Wouldn’t you also say that logistics is playing a part, too? Meaning, the banks aren’t really staffed to handle the REOs portfolios they have.

Combine that with the fact that, when the banks auction properties off, they rarely sell and the banks wind up buying them right back. If they were to release the bulk of their inventories, the impact on pricing would be horrific.

[Allan from Fallbrook]

SDR: Wouldn’t you also say that logistics is playing a part, too? Meaning, the banks aren’t really staffed to handle the REOs portfolios they have.

Combine that with the fact that, when the banks auction properties off, they rarely sell and the banks wind up buying them right back. If they were to release the bulk of their inventories, the impact on pricing would be horrific.

[Allan from Fallbrook]

SDR: Wouldn’t you also say that logistics is playing a part, too? Meaning, the banks aren’t really staffed to handle the REOs portfolios they have.

Combine that with the fact that, when the banks auction properties off, they rarely sell and the banks wind up buying them right back. If they were to release the bulk of their inventories, the impact on pricing would be horrific.

[peterb]

There’s been some recent articles in the news about shadow inventory and looks pretty convincing. But the banks have two strong reasons to hold back. The first is that actually selling the property forces it’s being marked to market…bad thing for their balance sheet. The second is that they would flood the market and force the price down to the floor in weeks.

And then there’s the banking apologists who explain that they’re just overwhelmed with NOD’s and it’s like the snake eating the elephant…..

But I have a sneaking feeling the all the derivatives attached to mortgages are so incredibly leveraged out that carnage will ensue if this all happens too quickly.

[peterb]

There’s been some recent articles in the news about shadow inventory and looks pretty convincing. But the banks have two strong reasons to hold back. The first is that actually selling the property forces it’s being marked to market…bad thing for their balance sheet. The second is that they would flood the market and force the price down to the floor in weeks.

And then there’s the banking apologists who explain that they’re just overwhelmed with NOD’s and it’s like the snake eating the elephant…..

But I have a sneaking feeling the all the derivatives attached to mortgages are so incredibly leveraged out that carnage will ensue if this all happens too quickly.

[peterb]

There’s been some recent articles in the news about shadow inventory and looks pretty convincing. But the banks have two strong reasons to hold back. The first is that actually selling the property forces it’s being marked to market…bad thing for their balance sheet. The second is that they would flood the market and force the price down to the floor in weeks.

And then there’s the banking apologists who explain that they’re just overwhelmed with NOD’s and it’s like the snake eating the elephant…..

But I have a sneaking feeling the all the derivatives attached to mortgages are so incredibly leveraged out that carnage will ensue if this all happens too quickly.

[peterb]

There’s been some recent articles in the news about shadow inventory and looks pretty convincing. But the banks have two strong reasons to hold back. The first is that actually selling the property forces it’s being marked to market…bad thing for their balance sheet. The second is that they would flood the market and force the price down to the floor in weeks.

And then there’s the banking apologists who explain that they’re just overwhelmed with NOD’s and it’s like the snake eating the elephant…..

But I have a sneaking feeling the all the derivatives attached to mortgages are so incredibly leveraged out that carnage will ensue if this all happens too quickly.

[Author]

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