[SD Transplant]

I was expecting a huge increase in Bank owned/REO inventory, but the Govt. interventions prevented or delayed that process. However, I can’t see how the banks would have any incentive to move these REOs because:

1) There was no way to value them under the previous M2M model (now that’s been eased, so the assets could be hidden/reported better)
2) TARP money was flowing…..why bother to create a bureaucratic system to deal w/ REO when you can ask for taxpayers bail outs.

However, the market forces are stonger, and it will catch up to those that fight against them (ARM resets, specifically in CA; unemployment; lack of move up buyers to support the system).

We’ll see. I hope I’m not wrong, but the current interventions (low rates) sold a lot of REOs lately.

[SD Transplant]

I was expecting a huge increase in Bank owned/REO inventory, but the Govt. interventions prevented or delayed that process. However, I can’t see how the banks would have any incentive to move these REOs because:

1) There was no way to value them under the previous M2M model (now that’s been eased, so the assets could be hidden/reported better)
2) TARP money was flowing…..why bother to create a bureaucratic system to deal w/ REO when you can ask for taxpayers bail outs.

However, the market forces are stonger, and it will catch up to those that fight against them (ARM resets, specifically in CA; unemployment; lack of move up buyers to support the system).

We’ll see. I hope I’m not wrong, but the current interventions (low rates) sold a lot of REOs lately.

[SD Transplant]

I was expecting a huge increase in Bank owned/REO inventory, but the Govt. interventions prevented or delayed that process. However, I can’t see how the banks would have any incentive to move these REOs because:

1) There was no way to value them under the previous M2M model (now that’s been eased, so the assets could be hidden/reported better)
2) TARP money was flowing…..why bother to create a bureaucratic system to deal w/ REO when you can ask for taxpayers bail outs.

However, the market forces are stonger, and it will catch up to those that fight against them (ARM resets, specifically in CA; unemployment; lack of move up buyers to support the system).

We’ll see. I hope I’m not wrong, but the current interventions (low rates) sold a lot of REOs lately.

[SD Transplant]

I was expecting a huge increase in Bank owned/REO inventory, but the Govt. interventions prevented or delayed that process. However, I can’t see how the banks would have any incentive to move these REOs because:

1) There was no way to value them under the previous M2M model (now that’s been eased, so the assets could be hidden/reported better)
2) TARP money was flowing…..why bother to create a bureaucratic system to deal w/ REO when you can ask for taxpayers bail outs.

However, the market forces are stonger, and it will catch up to those that fight against them (ARM resets, specifically in CA; unemployment; lack of move up buyers to support the system).

We’ll see. I hope I’m not wrong, but the current interventions (low rates) sold a lot of REOs lately.

[SD Transplant]

I’d like to know how the new FASB changes on M2M will impact assets on bank’s balance sheets and will they price them lower (at true market value)? Will this have an impact on RE prices?

[SD Transplant]

I’d like to know how the new FASB changes on M2M will impact assets on bank’s balance sheets and will they price them lower (at true market value)? Will this have an impact on RE prices?

[SD Transplant]

I’d like to know how the new FASB changes on M2M will impact assets on bank’s balance sheets and will they price them lower (at true market value)? Will this have an impact on RE prices?

[SD Transplant]

I’d like to know how the new FASB changes on M2M will impact assets on bank’s balance sheets and will they price them lower (at true market value)? Will this have an impact on RE prices?

[SD Transplant]

I’d like to know how the new FASB changes on M2M will impact assets on bank’s balance sheets and will they price them lower (at true market value)? Will this have an impact on RE prices?

[SD Transplant]

Thanks for posting the link…..great read

[SD Transplant]

Thanks for posting the link…..great read

[SD Transplant]

Thanks for posting the link…..great read

[SD Transplant]

Thanks for posting the link…..great read

[SD Transplant]

Thanks for posting the link…..great read

[SD Transplant]

I’ve had the same conversation with my wife on Mira Mesa homes. Bottom line, the preforeclose or foreclosed inventory is in its own bubble. A quick check at hotpads.com/foreclosure tab shows about 658 units in Mira Mesa (zip 92126).
http://hotpads.com/search/#lat=32.922969765825&lon=-117.1446418762207&zoom=22&listingTypes=foreclosure&pricingFrequency=once&loan=30,0.0525,0&visible=new,viewed,favorite&checkInDate=20090430&checkOutDate=20090501
I have also pulled foreclosure.com which notes about 1699 units in preforeclosure & 693 as REOs for the same zip. We’re far away from a typical inventory turn around but none of the less, the prices have enticed new buyers.

http://www.foreclosures.com/Lists/ShowData.asp?q=1

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