Banks holding on to forclosed properties

[evilnewbie]

Not enough manpower? They don't do anything other than tell the realtor that this property is up for sale for this price... that's it... its easy to see their motive, all you have to do it is think about it... if they unleashed all these homes into the market now, guess what, home prices will drop and drop substantially which means the bank makes even LESS money than if they held it... HOWEVER, if they keep holding it, the prices will continue to drop but at a slower pace while they try to clear inventory... the government gives them money to offset this loss so there is no incentive for them to release all these properties into the market... BUT if they lose the government money, guess what, the homes will flood the market... the government is helping banks to manipulate home prices and they have explicitly told the american people that they are trying to stop home prices drops... the government said it, you just didn't know how they were doing it.... its not a surprise... its been known since last year... nobody cares... buyers are paying a higher price on their home thanks to the government... isn't it great when business and government colludes against the taxpayer...

[darstar]

Originally Posted by evilnewbie

Not enough manpower? They don't do anything other than tell the realtor that this property is up for sale for this price... that's it... its easy to see their motive, all you have to do it is think about it... if they unleashed all these homes into the market now, guess what, home prices will drop and drop substantially which means the bank makes even LESS money than if they held it... HOWEVER, if they keep holding it, the prices will continue to drop but at a slower pace while they try to clear inventory... the government gives them money to offset this loss so there is no incentive for them to release all these properties into the market... BUT if they lose the government money, guess what, the homes will flood the market... the government is helping banks to manipulate home prices and they have explicitly told the american people that they are trying to stop home prices drops... the government said it, you just didn't know how they were doing it.... its not a surprise... its been known since last year... nobody cares... buyers are paying a higher price on their home thanks to the government... isn't it great when business and government colludes against the taxpayer...

All this lack of transparency is why I started the thread. If the real numbers were out in the public domain , well , .... I would hate to be a Realtor. The real value of a lot of homes is like what was reported on CNBC... what someone or corporation is willing to pay ,... .07 cents on the dollar !

[nightbird47]

Originally Posted by SuSuSushi

It may be simply because the banks that own them don't have enough manpower to get them on the market. Or, it could be that they're waiting because they have nothing to lose, and are hoping for a market gain.

Its also possible that letting people stay for a nominal rent keeps the house from being taken over by druggies or just vandalized because its there. The utilities will be running so things like pipes won't deteriorate and the grass will be cut. There are too many neighborhoods with half the houses "occupied" but not officially or simply falling apart. Anyone who still lives there and any homes the bank hopes to sell some day will lose value badly in this situation.

And streets of empty houses are an open invitation for the drug gangs and their customers to move in. A "good" area becomes somewhere you don't want to bring your kids. Once they move in its harder to get them out than try to maintain a neighborhood.