Henry Fishkind, an Orlando-based housing economist, says some banks tell him they “are holding back [foreclosed-home] inventory” to avoid depressing prices any more than necessary. “It’s in their interest” to avoid flooding the market, and regulators haven’t forced them to do so, he says. That suggests that the backlog of homes headed for foreclosure will be stretched out over several years. ...
Jack McCabe, a housing analyst in Deerfield Beach, Fla. ... points to the temptation for borrowers to stop paying their mortgages because they don’t believe they will ever have equity and expect banks to take a long time evicting them. Mr. McCabe says he knows people who haven’t paid their mortgages in more than a year and still haven’t been evicted. “Some people are saying, ‘I could pay my mortgage bill, but why?’”
Friday, September 25, 2009
Shadow inventory
Foreclosures in waiting:
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The reason the banks don't want to sell is because they know when Obama passes Amnesty more illegals will be flooding in, suddenly those housing prices are going to go up again, just like they did when the last big wave came in.
ReplyDeleteSo, if they don't have to account for the losses now, why sell low now?
I'm in San Diego and I know MANY people that aren't paying their mortgage. Some have been in their properties for several years without paying! One guy I know owes over 30k in hoa fees. I don't know how he's been able to get away with that.
ReplyDelete"The reason the banks don't want to sell is because they know when Obama passes Amnesty more illegals will be flooding in"
ReplyDeleteReally? That's seriously what you think banks are basing their decisions on? The possibility that some sort of immigration laws will change at some point in the future and then immigration might drive prices back up. Um, OK. Then you should probably run out and buy a bunch of real estate before you miss this opportunity. Have fun getting super rich.
I too am from San Diego, and also know several people who have not made payments on their homes for over a year, and have not received NOD's. I wonder how long they can drag this out? What a wonderful system we have!
ReplyDeleteI'd like to take a survey of those in the San Diego homes who are not paying off their mortgages. If that is the case, then the property taxes are not being paid as well. What % of these home occupants are working full or part time, and how much are they putting into savings?
ReplyDelete"What % of these home occupants are working full or part time, and how much are they putting into savings?"
ReplyDelete0% are putting into savings.
1) Americans dont know how to save money, they borrow money to buy what they want
2) Even if they saved money and didnt pay their mortgages and taxes, the banks and gov would get all their savings in the end.
The reason the banks don't want to sell is because they know when Obama passes Amnesty more illegals will be flooding in, suddenly those housing prices are going to go up again, just like they did when the last big wave came in.
ReplyDeleteDon't forget about ACORN. Never forget about ACORN...
"some banks tell him"
ReplyDeletethats an understatement. The FDIC is basically bankrupt and only SOME banks are holding foreclosed run down properties???