The banks do not have a choice. – Page 2 – Piggington's Econo-Almanac

This topic has 175 replies, 19 voices, and was last updated 17 years, 2 months ago by kewp.

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January 3, 2008 at 5:17 PM #128999

nostradamus
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Not exactly answering the original question, this relates more to what kewp said: You can go to the bank websites and see what they have for sale. As you can see here, Countrywide has over $3B in foreclosed homes for sale. It does not list homes they own but are not selling, which would be a very interesting statistic indeed. The data in that link comes from Countrwide's own website:

http://www.countrywide.com/purchase/f_reo.asp

January 3, 2008 at 5:34 PM #128731

HereWeGo
Participant

Actually that looks like the total number of vacant homes, rather than the total number of bank-owned vacant homes. Obviously the vast majority are not for sale. A further breakdown of that 17.9 million inventory would be needed to really assess the situation (how many owned free and clear, how many REO, etc.)

Still, it’s a heck of a lot easier to decide to sell a vacant home than the home you occupy.

January 3, 2008 at 5:34 PM #128897

HereWeGo
Participant

Actually that looks like the total number of vacant homes, rather than the total number of bank-owned vacant homes. Obviously the vast majority are not for sale. A further breakdown of that 17.9 million inventory would be needed to really assess the situation (how many owned free and clear, how many REO, etc.)

Still, it’s a heck of a lot easier to decide to sell a vacant home than the home you occupy.

January 3, 2008 at 5:34 PM #128906

HereWeGo
Participant

Actually that looks like the total number of vacant homes, rather than the total number of bank-owned vacant homes. Obviously the vast majority are not for sale. A further breakdown of that 17.9 million inventory would be needed to really assess the situation (how many owned free and clear, how many REO, etc.)

Still, it’s a heck of a lot easier to decide to sell a vacant home than the home you occupy.

January 3, 2008 at 5:34 PM #128975

HereWeGo
Participant

Actually that looks like the total number of vacant homes, rather than the total number of bank-owned vacant homes. Obviously the vast majority are not for sale. A further breakdown of that 17.9 million inventory would be needed to really assess the situation (how many owned free and clear, how many REO, etc.)

Still, it’s a heck of a lot easier to decide to sell a vacant home than the home you occupy.

January 3, 2008 at 5:34 PM #129004

HereWeGo
Participant

Actually that looks like the total number of vacant homes, rather than the total number of bank-owned vacant homes. Obviously the vast majority are not for sale. A further breakdown of that 17.9 million inventory would be needed to really assess the situation (how many owned free and clear, how many REO, etc.)

Still, it’s a heck of a lot easier to decide to sell a vacant home than the home you occupy.

January 3, 2008 at 5:38 PM #128736

guitar187
Participant

I think there is an underestimate of how big the bulk REO market is. A good portion of this stuff will get sold in Bulk to investors who will attempt to market them individually on their own.

If you could see the inefficiencies in Account Managers, Real Estate Agents, etc. trying to liquidate these properties you would understand why.

January 3, 2008 at 5:38 PM #128902

guitar187
Participant

I think there is an underestimate of how big the bulk REO market is. A good portion of this stuff will get sold in Bulk to investors who will attempt to market them individually on their own.

If you could see the inefficiencies in Account Managers, Real Estate Agents, etc. trying to liquidate these properties you would understand why.

January 3, 2008 at 5:38 PM #128911

guitar187
Participant

I think there is an underestimate of how big the bulk REO market is. A good portion of this stuff will get sold in Bulk to investors who will attempt to market them individually on their own.

If you could see the inefficiencies in Account Managers, Real Estate Agents, etc. trying to liquidate these properties you would understand why.

January 3, 2008 at 5:38 PM #128980

guitar187
Participant

I think there is an underestimate of how big the bulk REO market is. A good portion of this stuff will get sold in Bulk to investors who will attempt to market them individually on their own.

If you could see the inefficiencies in Account Managers, Real Estate Agents, etc. trying to liquidate these properties you would understand why.

January 3, 2008 at 5:38 PM #129009

guitar187
Participant

I think there is an underestimate of how big the bulk REO market is. A good portion of this stuff will get sold in Bulk to investors who will attempt to market them individually on their own.

If you could see the inefficiencies in Account Managers, Real Estate Agents, etc. trying to liquidate these properties you would understand why.

January 3, 2008 at 6:45 PM #128741

kewp
Participant

It would be kind of funny if it wasn’t so sad.

This is what really kills me about the current monetary policy of the Fed. The banks are crying that they need cheap money to provide liquidity and stay solvent. When they are sitting on literally billions of dollars of hard assets (real estate).

However there is a catch-22 that once they start liquidating stuff, it will set comps and lower the net worth of whats left.

So we all end up paying for this via inflation. And the banks are going to get slammed anyways, as they are going to need to move the inventory at some point. They can’t hold it forever.

Or maybe they can. I guess time will tell.

January 3, 2008 at 6:45 PM #128907

kewp
Participant

It would be kind of funny if it wasn’t so sad.

This is what really kills me about the current monetary policy of the Fed. The banks are crying that they need cheap money to provide liquidity and stay solvent. When they are sitting on literally billions of dollars of hard assets (real estate).

However there is a catch-22 that once they start liquidating stuff, it will set comps and lower the net worth of whats left.

So we all end up paying for this via inflation. And the banks are going to get slammed anyways, as they are going to need to move the inventory at some point. They can’t hold it forever.

Or maybe they can. I guess time will tell.

January 3, 2008 at 6:45 PM #128916

kewp
Participant

It would be kind of funny if it wasn’t so sad.

This is what really kills me about the current monetary policy of the Fed. The banks are crying that they need cheap money to provide liquidity and stay solvent. When they are sitting on literally billions of dollars of hard assets (real estate).

However there is a catch-22 that once they start liquidating stuff, it will set comps and lower the net worth of whats left.

So we all end up paying for this via inflation. And the banks are going to get slammed anyways, as they are going to need to move the inventory at some point. They can’t hold it forever.

Or maybe they can. I guess time will tell.

January 3, 2008 at 6:45 PM #128985

kewp
Participant

It would be kind of funny if it wasn’t so sad.

This is what really kills me about the current monetary policy of the Fed. The banks are crying that they need cheap money to provide liquidity and stay solvent. When they are sitting on literally billions of dollars of hard assets (real estate).

However there is a catch-22 that once they start liquidating stuff, it will set comps and lower the net worth of whats left.

So we all end up paying for this via inflation. And the banks are going to get slammed anyways, as they are going to need to move the inventory at some point. They can’t hold it forever.

Or maybe they can. I guess time will tell.
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