Are banks holding on to foreclosure inventory?
by elizabetheugenio on May 18, 2009
Rick Sharga, vice president of Realtytrac, a company that compiles data on foreclosures indicated that banks are sitting on foreclosure inventory that they have not put on the market. These creates ”shadow inventory” that could create havoc once they flood the market. There is a discrepancy between the number of homes that have been foreclosed on against the number of homes that are being sold. Some say that the delay in getting these homes on the market could be due to the moratorium on foreclosures. Others say that banks could be strategically holding back in releasing the homes so they do not drive prices down and cause further decline in property values. Of course there is the other factor that it takes a while to get the house vacated and cleaned out to be ready for sale.
Banks seem to be prolonging the foreclosure process on homes with delinquent mortgages. They are more willing to negotiate with homewoners about loan modifications and other ways to keep them in the house. All indications point to the fact that banks are dragging their feet in foreclosing. The inventory of homes for sale is low. Once again, homes are getting multiple offers.
Elizabeth Eugenio, (909) 376-8615
Certified Residential Specialist, Certified Distressed Property Expert, Graduate Realtor Institute
Elizabeth@HomesByLiz.com, www.HomesByLiz.com
Tagged as:
bank owned properties,
buy a home,
real estate
Tell Others What You're Reading!
Connect with me!
Since 1991, I have served the residents of Chino Hills and surrounding cities. Providing exceptional customer service has been my top priority earning me referral and repeat business from family, friends, associates and past clients.
The advanced training in finance, marketing and technology I received as a Certified Residential Specialist (CRS) designee provides you better representation making the buying and selling process a more profitable and easier experience. Only 4 % of Realtors in the nation has earned this designation.
Short Sale and Foreclosure Resource (SFR) is the only designation recognized by the National Association of Realtor for short sale and foreclosures. This designation and the (CDPE) Certified Distressed Property Expert has allows me to better assist you as a buyer on your purchase of these properties and as a homeowner experiencing financial hardship avoid foreclosure.
Additionally, the Seniors Real Estate Specialist (SRES) designation has helped me serve the special needs of the 55 years and better population by making the process easier and help keep more of your r money when you move.
Contact me for all your real estate needs and you can count on me to provide you better representation and make sure you have an easier and smoother transaction. I can be reached at (909) 376-8615 or at: Elizabeth@HomesByLiz.info.
Elizabeth has written 27 articles on this blog.
