Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I've been reading a lot about "shadow inventory" lately, but also some accounts that it's overstated or paranoid. Finally putting two and two together, I looked up "Bank owned" on Realty Trac in my area and saw 40 properties listed. Only 4 of them had a "for sale" sign.
Just looking for clarification if anyone knows what this means. Are these truly homes that the banks have foreclosed, owned and aren't selling or are they something else.
I've been reading a lot about "shadow inventory" lately, but also some accounts that it's overstated or paranoid. Finally putting two and two together, I looked up "Bank owned" on Realty Trac in my area and saw 40 properties listed. Only 4 of them had a "for sale" sign.
Just looking for clarification if anyone knows what this means. Are these truly homes that the banks have foreclosed, owned and aren't selling or are they something else.
Thanks for any insight.
There are many homes that either a) are foreclosed and the bank has not listed them yet. and b) the current occupier of the home has not made a mortgage payment in months and is waiting to be foreclosed on. The backlog has banks too busy to get to everyone who is not paying their mortgage.
I looked up "Bank owned" on Realty Trac in my area and saw 40 properties listed. Only 4 of them had a "for sale" sign.
Just looking for clarification if anyone knows what this means.
Realty Trac is not a reliable source of information.
The MLS is our area does not require a REO-owned listing to be flagged as such, until a sale closes.
There is always shadow inventory. Back when the S/L industry blew up, the Resolution Trust Company (RTC) took 5+ years to liquidate their real estate holdings. It is generally thought that RTC broke even with this strategy. Who knows? I did not audit their books.
Realty Trac is not a reliable source of information.
The MLS is our area does not require a REO-owned listing to be flagged as such, until a sale closes.
There is always shadow inventory. Back when the S/L industry blew up, the Resolution Trust Company (RTC) took 5+ years to liquidate their real estate holdings. It is generally thought that RTC broke even with this strategy. Who knows? I did not audit their books.
Thanks! Couldn't rep you again yet. Although this doesn't help me understand whether we have much local shadow inventory, it at least doesn't have me believing Realty Trac hook, line and sinker.
Our MLS requires "Bank Owned" property be noted in the MLS. Each MLS will have their own rules.
Banks are holding a huge amount of inventory - more than they can efficently handle. I'm the first to complain they aren't efficent enough!
However, there are many reasons why a bank owned property is not listed the same day it's foreclosed:
1. In some cases, a legal eviction process may be underway - even though everyone can see no one is living in the property.
2. Even after the bank forecloses there may be jr. liens that must be cleared of their redemption time before rhe propety can be offered for sale.
3. Clean out takes time. Banks do no usually spend money fixing up or doing repairs - however there are many times when trash and such needs to be hauled away & that takes time for the agent (or rep) to line up a vendor to do the work, etc.
There's no question it's a slow process in the best of times.
Are they holding back inventory? Maybe - in some cases it might be a profitable idea. Any savvy seller of huge volumes of inventory would. But from my interaction with most of these institutions is not impressive. No single bank owns "all" the "bank owned" property. There's tons of them! It would be nearly impossible for one bank to use their inventory to truly impact the market to their own advantage.
In Nevada and most places in the west it is easy to tell who owns property. Barring a few cases where slumlords try to evade responsibility for their properties the county tax records show who owns what.
The lenders do not have any significant inventory. The have sold almost 50,000 properties here over the last couple of years and have a few thousand in inventory. A good part of that inventory is listed on the market.
The REO thing has begun to run down here and will likely keep doing so. Check back in the spring. But I don't expect a substantial increase.
I can't speak about everywhere else, but my HOA has mowed 21 abandoned properties in our 1500+ homes neighborhood for the last 6 months. Six are bank owned on the public records and only three of those are listed in MLS. I've been trying to buy one of the non-listeds since May. If this is any indication of shadow inventory, I'd say it's larger than it appears on the surface.
Last edited by TampaKaren; 10-19-2009 at 08:19 PM..
I can't speak about everywhere else, but my HOA has mowed 21 abandoned properties in our 1500+ homes neighborhood for the last 6 months. Six are bank owned on the public records and only three of those are listed in MLS. I've been trying to buy one of the non-listeds since May. If this is any indication of shadow inventory, I'd say it's larger than it appears on the surface.
So 0.4% are bank owned. 1% are in the foreclosure or simply abandoned?
we have whole neighborhoods that would declare victory and throw a block party for those kind of numbers.
Each of the 15 has a Lis Pendens; there are two bankruptcy filings. I suspect the banks are delaying foreclosure to avoid yet another non-performing asset. For the six bank owned, three are not in MLS. I assume some stage of pre-list, but they're not there either. I know our neighborhood has been pretty lucky. We rarely have more than 5% vacancy. Of course, that could very well change in the future. There many other neighborhoods as you referred to that have not faired so well.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
It is Silly
