The banks do not have a choice.

[nostradamus]

While there is no clear-cut answer to the question of bank-owned RE held off the market, there are plenty of reasons to believe that we have only seen a fraction of available inventory for sale. Who is holding this inventory and why?

Builders holding inventory (previously posted here) WSJ Article

The Bloomberg article (posted earlier on this thread) states that banks are holding onto inventory. You can contact that reporter at [email protected] maybe he'll explain how he reached that conclusion. His stated source is:

US Census Bureau http://www.census.gov/hhes/www/housing/hvs/qtr307/q307tab4.html As you can see from that table (which gives the break-down HereWeGo wanted), 17.89 million homes sit vacant. Of those, 2 million are for sale. Whether the bank owns them or not, I find it unsettling.

Here is all the US Census info on housing for Q3 '07. http://www.census.gov/hhes/www/housing/hvs/qtr307/q307ind.html

One interesting table is this, which shows that the vacancy rate is the highest since 1960. Between 2004 and 2007 the vacancy rate jumped 50%. Gee, what else happened between 2004 and 2007? SOMEBODY is holding those empty homes. Builders? Banks? Individuals? Who knows. http://www.census.gov/hhes/www/housing/hvs/qtr307/q307tab1.html

[NotCranky]

One possibility for the vacancies and a contributing factor to “phantom” inventory theories could be that the foreclosure process is taking longer than it has to. Notice of default to the trustee’s sale legally requires 3 months and 21 days. Some of the vacancies might be homes that have a NOD but have not gone to a trustee’s sale. In any case, I think the over all slow pace of getting to the trustees sale or trustees sale to the MLS can give this unfulfilled expectation that we should be seeing more houses being marketed as REO, thus causing a suspicion of “Phantom inventory”.

Just a theory about something that probably to some degree is affecting this perception, at least locally.Not to say there is or isn’t any stockpiling of REO’s going on here or someplace else. Seems to me that one of the smarter data hounds here could lay out a definitive answer.

[NotCranky]

One possibility for the vacancies and a contributing factor to “phantom” inventory theories could be that the foreclosure process is taking longer than it has to. Notice of default to the trustee’s sale legally requires 3 months and 21 days. Some of the vacancies might be homes that have a NOD but have not gone to a trustee’s sale. In any case, I think the over all slow pace of getting to the trustees sale or trustees sale to the MLS can give this unfulfilled expectation that we should be seeing more houses being marketed as REO, thus causing a suspicion of “Phantom inventory”.

Just a theory about something that probably to some degree is affecting this perception, at least locally.Not to say there is or isn’t any stockpiling of REO’s going on here or someplace else. Seems to me that one of the smarter data hounds here could lay out a definitive answer.

[NotCranky]

One possibility for the vacancies and a contributing factor to “phantom” inventory theories could be that the foreclosure process is taking longer than it has to. Notice of default to the trustee’s sale legally requires 3 months and 21 days. Some of the vacancies might be homes that have a NOD but have not gone to a trustee’s sale. In any case, I think the over all slow pace of getting to the trustees sale or trustees sale to the MLS can give this unfulfilled expectation that we should be seeing more houses being marketed as REO, thus causing a suspicion of “Phantom inventory”.

Just a theory about something that probably to some degree is affecting this perception, at least locally.Not to say there is or isn’t any stockpiling of REO’s going on here or someplace else. Seems to me that one of the smarter data hounds here could lay out a definitive answer.

[NotCranky]

One possibility for the vacancies and a contributing factor to “phantom” inventory theories could be that the foreclosure process is taking longer than it has to. Notice of default to the trustee’s sale legally requires 3 months and 21 days. Some of the vacancies might be homes that have a NOD but have not gone to a trustee’s sale. In any case, I think the over all slow pace of getting to the trustees sale or trustees sale to the MLS can give this unfulfilled expectation that we should be seeing more houses being marketed as REO, thus causing a suspicion of “Phantom inventory”.

Just a theory about something that probably to some degree is affecting this perception, at least locally.Not to say there is or isn’t any stockpiling of REO’s going on here or someplace else. Seems to me that one of the smarter data hounds here could lay out a definitive answer.

[NotCranky]

One possibility for the vacancies and a contributing factor to “phantom” inventory theories could be that the foreclosure process is taking longer than it has to. Notice of default to the trustee’s sale legally requires 3 months and 21 days. Some of the vacancies might be homes that have a NOD but have not gone to a trustee’s sale. In any case, I think the over all slow pace of getting to the trustees sale or trustees sale to the MLS can give this unfulfilled expectation that we should be seeing more houses being marketed as REO, thus causing a suspicion of “Phantom inventory”.

Just a theory about something that probably to some degree is affecting this perception, at least locally.Not to say there is or isn’t any stockpiling of REO’s going on here or someplace else. Seems to me that one of the smarter data hounds here could lay out a definitive answer.

[kewp]

Google ‘foreclosure urban blight’.

Lots and lots of anecdotal evidence that banks are foreclosing and not selling the properties.

[kewp]

Google ‘foreclosure urban blight’.

Lots and lots of anecdotal evidence that banks are foreclosing and not selling the properties.

[kewp]

Google ‘foreclosure urban blight’.

Lots and lots of anecdotal evidence that banks are foreclosing and not selling the properties.

[kewp]

Google ‘foreclosure urban blight’.

Lots and lots of anecdotal evidence that banks are foreclosing and not selling the properties.

[kewp]

Google ‘foreclosure urban blight’.

Lots and lots of anecdotal evidence that banks are foreclosing and not selling the properties.

[nostradamus]

Submitted by Rustico on January 7, 2008 – 3:52pm.

One possibility for the vacancies and a contributing factor to "phantom" inventory theories could be that the foreclosure process is taking longer than it has to.

That said, when the slow-moving foreclosure train hits the ever-falling sales train one might expect to see some really juicy price reductions (not stating anything new here).

Aside from data snooping, can one of the bank insiders (Davej or Bugs?) get us some info? Are lenders really holding inventory?

Another question is, are banks hesitating to foreclose? The best thing for them is to keep the borrower trapped in the sinking house. If I were the bank right now I'd hold off foreclosing as long as possible to see what other tax funded government bailouts come down the pipeline. If Barrack or Hilary get elected I'd imagine the banks will be expecting major bailout action.

[nostradamus]

Submitted by Rustico on January 7, 2008 – 3:52pm.

One possibility for the vacancies and a contributing factor to "phantom" inventory theories could be that the foreclosure process is taking longer than it has to.

That said, when the slow-moving foreclosure train hits the ever-falling sales train one might expect to see some really juicy price reductions (not stating anything new here).

Aside from data snooping, can one of the bank insiders (Davej or Bugs?) get us some info? Are lenders really holding inventory?

Another question is, are banks hesitating to foreclose? The best thing for them is to keep the borrower trapped in the sinking house. If I were the bank right now I'd hold off foreclosing as long as possible to see what other tax funded government bailouts come down the pipeline. If Barrack or Hilary get elected I'd imagine the banks will be expecting major bailout action.

[nostradamus]

Submitted by Rustico on January 7, 2008 – 3:52pm.

One possibility for the vacancies and a contributing factor to "phantom" inventory theories could be that the foreclosure process is taking longer than it has to.

That said, when the slow-moving foreclosure train hits the ever-falling sales train one might expect to see some really juicy price reductions (not stating anything new here).

Aside from data snooping, can one of the bank insiders (Davej or Bugs?) get us some info? Are lenders really holding inventory?

Another question is, are banks hesitating to foreclose? The best thing for them is to keep the borrower trapped in the sinking house. If I were the bank right now I'd hold off foreclosing as long as possible to see what other tax funded government bailouts come down the pipeline. If Barrack or Hilary get elected I'd imagine the banks will be expecting major bailout action.

[nostradamus]

Submitted by Rustico on January 7, 2008 – 3:52pm.

One possibility for the vacancies and a contributing factor to "phantom" inventory theories could be that the foreclosure process is taking longer than it has to.

That said, when the slow-moving foreclosure train hits the ever-falling sales train one might expect to see some really juicy price reductions (not stating anything new here).

Aside from data snooping, can one of the bank insiders (Davej or Bugs?) get us some info? Are lenders really holding inventory?

Another question is, are banks hesitating to foreclose? The best thing for them is to keep the borrower trapped in the sinking house. If I were the bank right now I'd hold off foreclosing as long as possible to see what other tax funded government bailouts come down the pipeline. If Barrack or Hilary get elected I'd imagine the banks will be expecting major bailout action.

[Author]

Posts