So, where are all the foreclosures?

[Arraya]

Allan-You are pretty much correct, IMO. The back end (processing) and the front end (releasing to market) are all being metered by a cumulative effect. Logistic hold ups on the back end and a purposeful effort not to flood the market on front end. Even the condo-turned-rentals in my neighborhood are only being advertised one or two at a time when there are 8-30 units that are available. Some are even renting some units and trying to sell others in the same building. Otherwise known as a clusterfuck when looking at it in total and trying discern value.

[4plexowner]

“We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market,” said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures.
“California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You’d have further depreciation and carnage.”

http://www.nuwireinvestor.com/blogs/investorcentric/2009/04/banks-believed-to-be-holding-around.html

[4plexowner]

“We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market,” said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures.
“California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You’d have further depreciation and carnage.”

http://www.nuwireinvestor.com/blogs/investorcentric/2009/04/banks-believed-to-be-holding-around.html

[4plexowner]

“We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market,” said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures.
“California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You’d have further depreciation and carnage.”

http://www.nuwireinvestor.com/blogs/investorcentric/2009/04/banks-believed-to-be-holding-around.html

[4plexowner]

“We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market,” said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures.
“California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You’d have further depreciation and carnage.”

http://www.nuwireinvestor.com/blogs/investorcentric/2009/04/banks-believed-to-be-holding-around.html

[4plexowner]

“We believe there are in the neighborhood of 600,000 properties nationwide that banks have repossessed but not put on the market,” said Rick Sharga, vice president of RealtyTrac, which compiles nationwide statistics on foreclosures.
“California probably represents 80,000 of those homes. It could be disastrous if the banks suddenly flooded the market with those distressed properties. You’d have further depreciation and carnage.”

http://www.nuwireinvestor.com/blogs/investorcentric/2009/04/banks-believed-to-be-holding-around.html

[Allan from Fallbrook]

4plex: So it becomes simple supply and demand. By restricting supply, the banks in essence create a price support for the existing housing stock that is for sale.

Expanding supply by releasing a flood of foreclosures would wreck that support and drive prices back down. Then the true effects of overleveraging would become immediately apparent.

My uncle, who was in investment banking with Merrill Lynch, used to say, “Leverage in reverse is a female dog”.

[Allan from Fallbrook]

4plex: So it becomes simple supply and demand. By restricting supply, the banks in essence create a price support for the existing housing stock that is for sale.

Expanding supply by releasing a flood of foreclosures would wreck that support and drive prices back down. Then the true effects of overleveraging would become immediately apparent.

My uncle, who was in investment banking with Merrill Lynch, used to say, “Leverage in reverse is a female dog”.

[Allan from Fallbrook]

4plex: So it becomes simple supply and demand. By restricting supply, the banks in essence create a price support for the existing housing stock that is for sale.

Expanding supply by releasing a flood of foreclosures would wreck that support and drive prices back down. Then the true effects of overleveraging would become immediately apparent.

My uncle, who was in investment banking with Merrill Lynch, used to say, “Leverage in reverse is a female dog”.

[Allan from Fallbrook]

4plex: So it becomes simple supply and demand. By restricting supply, the banks in essence create a price support for the existing housing stock that is for sale.

Expanding supply by releasing a flood of foreclosures would wreck that support and drive prices back down. Then the true effects of overleveraging would become immediately apparent.

My uncle, who was in investment banking with Merrill Lynch, used to say, “Leverage in reverse is a female dog”.

[Allan from Fallbrook]

4plex: So it becomes simple supply and demand. By restricting supply, the banks in essence create a price support for the existing housing stock that is for sale.

Expanding supply by releasing a flood of foreclosures would wreck that support and drive prices back down. Then the true effects of overleveraging would become immediately apparent.

My uncle, who was in investment banking with Merrill Lynch, used to say, “Leverage in reverse is a female dog”.

[4plexowner]

delay seems like the best strategy for the banks to employ at this point for any number of reasons

I posted the link because it was the first place I saw the 600K and 80K numbers

as to your question, I’d say, does it really matter whether the ‘hidden inventory’ is ‘on the market’ or not? once the consumer has the perception that the ‘hidden inventory’ exists it might as well be on the market anyway – right back to supply and demand, only now the previously hidden inventory has to be included in the supply column and what happens to prices as a result?

[4plexowner]

delay seems like the best strategy for the banks to employ at this point for any number of reasons

I posted the link because it was the first place I saw the 600K and 80K numbers

as to your question, I’d say, does it really matter whether the ‘hidden inventory’ is ‘on the market’ or not? once the consumer has the perception that the ‘hidden inventory’ exists it might as well be on the market anyway – right back to supply and demand, only now the previously hidden inventory has to be included in the supply column and what happens to prices as a result?

[4plexowner]

delay seems like the best strategy for the banks to employ at this point for any number of reasons

I posted the link because it was the first place I saw the 600K and 80K numbers

as to your question, I’d say, does it really matter whether the ‘hidden inventory’ is ‘on the market’ or not? once the consumer has the perception that the ‘hidden inventory’ exists it might as well be on the market anyway – right back to supply and demand, only now the previously hidden inventory has to be included in the supply column and what happens to prices as a result?

[4plexowner]

delay seems like the best strategy for the banks to employ at this point for any number of reasons

I posted the link because it was the first place I saw the 600K and 80K numbers

as to your question, I’d say, does it really matter whether the ‘hidden inventory’ is ‘on the market’ or not? once the consumer has the perception that the ‘hidden inventory’ exists it might as well be on the market anyway – right back to supply and demand, only now the previously hidden inventory has to be included in the supply column and what happens to prices as a result?

[Author]

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