The banks do not have a choice.

[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.

[kaycee]

There is an interesting article in Business Week about how some cities are now requiring the banks to repair and maintain properties that they hold the note on when they have begun foreclosure and the house is now vacant. Not only do they fine them if they find they are allowing houses to have “brown lawns or green pools” but they then put a lien on the house that allows the courts to hold up sales of ANY properties that bank owns until they bring the properties up to standards. That may change their mind on holding vacant properties off the market.
//www.msnbc.msn.com/id/22506609/

[kaycee]

There is an interesting article in Business Week about how some cities are now requiring the banks to repair and maintain properties that they hold the note on when they have begun foreclosure and the house is now vacant. Not only do they fine them if they find they are allowing houses to have “brown lawns or green pools” but they then put a lien on the house that allows the courts to hold up sales of ANY properties that bank owns until they bring the properties up to standards. That may change their mind on holding vacant properties off the market.
//www.msnbc.msn.com/id/22506609/

[kaycee]

There is an interesting article in Business Week about how some cities are now requiring the banks to repair and maintain properties that they hold the note on when they have begun foreclosure and the house is now vacant. Not only do they fine them if they find they are allowing houses to have “brown lawns or green pools” but they then put a lien on the house that allows the courts to hold up sales of ANY properties that bank owns until they bring the properties up to standards. That may change their mind on holding vacant properties off the market.
//www.msnbc.msn.com/id/22506609/

[kaycee]

There is an interesting article in Business Week about how some cities are now requiring the banks to repair and maintain properties that they hold the note on when they have begun foreclosure and the house is now vacant. Not only do they fine them if they find they are allowing houses to have “brown lawns or green pools” but they then put a lien on the house that allows the courts to hold up sales of ANY properties that bank owns until they bring the properties up to standards. That may change their mind on holding vacant properties off the market.
//www.msnbc.msn.com/id/22506609/

[kaycee]

There is an interesting article in Business Week about how some cities are now requiring the banks to repair and maintain properties that they hold the note on when they have begun foreclosure and the house is now vacant. Not only do they fine them if they find they are allowing houses to have “brown lawns or green pools” but they then put a lien on the house that allows the courts to hold up sales of ANY properties that bank owns until they bring the properties up to standards. That may change their mind on holding vacant properties off the market.
//www.msnbc.msn.com/id/22506609/

[gold_dredger_phd]

The banks are hoping that inflation will save them because then they don’t have to sell their inventory at a “loss.”

Once the nominal value catches up via inflation, you will see many more properties coming onto the market.

[gold_dredger_phd]

The banks are hoping that inflation will save them because then they don’t have to sell their inventory at a “loss.”

Once the nominal value catches up via inflation, you will see many more properties coming onto the market.

[gold_dredger_phd]

The banks are hoping that inflation will save them because then they don’t have to sell their inventory at a “loss.”

Once the nominal value catches up via inflation, you will see many more properties coming onto the market.

[gold_dredger_phd]

The banks are hoping that inflation will save them because then they don’t have to sell their inventory at a “loss.”

Once the nominal value catches up via inflation, you will see many more properties coming onto the market.

[gold_dredger_phd]

The banks are hoping that inflation will save them because then they don’t have to sell their inventory at a “loss.”

Once the nominal value catches up via inflation, you will see many more properties coming onto the market.

[Anonymous]

Click through to the census site and you’ll find the data is not so apocalyptic. There’s 1.9M for sale and 2.7M off the market (which probably includes remodeling). The rest is in a variety of categories: 3.8M vacant rentals (mostly very temporary, I’m sure), 3.9M seasonal homes, and smaller amount used occasionally, awaiting occupancy, or serving as temporary homes.

At present I’d guess most of the stuff off market is investor properties. So the banks have put at least the majority of their stuff up for sale, or are in the process.

[Anonymous]

Click through to the census site and you’ll find the data is not so apocalyptic. There’s 1.9M for sale and 2.7M off the market (which probably includes remodeling). The rest is in a variety of categories: 3.8M vacant rentals (mostly very temporary, I’m sure), 3.9M seasonal homes, and smaller amount used occasionally, awaiting occupancy, or serving as temporary homes.

At present I’d guess most of the stuff off market is investor properties. So the banks have put at least the majority of their stuff up for sale, or are in the process.

[Anonymous]

Click through to the census site and you’ll find the data is not so apocalyptic. There’s 1.9M for sale and 2.7M off the market (which probably includes remodeling). The rest is in a variety of categories: 3.8M vacant rentals (mostly very temporary, I’m sure), 3.9M seasonal homes, and smaller amount used occasionally, awaiting occupancy, or serving as temporary homes.

At present I’d guess most of the stuff off market is investor properties. So the banks have put at least the majority of their stuff up for sale, or are in the process.

[Anonymous]

Click through to the census site and you’ll find the data is not so apocalyptic. There’s 1.9M for sale and 2.7M off the market (which probably includes remodeling). The rest is in a variety of categories: 3.8M vacant rentals (mostly very temporary, I’m sure), 3.9M seasonal homes, and smaller amount used occasionally, awaiting occupancy, or serving as temporary homes.

At present I’d guess most of the stuff off market is investor properties. So the banks have put at least the majority of their stuff up for sale, or are in the process.

[Author]

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