An interesting little factoid from RealtyTrac, the online foreclosure sale site that tracks all kinds of foreclosure data.

Apparently about 70 percent of foreclosures in its database have not yet been listed on the MLS. I'm wondering why? Why are the banks sitting on all these properties instead of listing them for sale?

Okay, a couple of posibilities:

The inventory of foreclosed properties has just exploded so rapidly and in such high volumes that the banks can't process it all as fast as they would like to.
In a lot of cases it's taking longer to process the foreclosures themselves and the homes are getting trashed. Before the bank puts the house up for sale it has to do all the repair work, and now more repair work is needed.
Now here's a possibility that is a bit more disturbing. Rick Sharga of RealtyTrac says he can't get anyone to confirm it but he can't get anyone to deny it either:

"The lenders are simply trying to defer the losses to a later date, because having to recognize the losses short term might pose severe risks to the banks in question."

What does that mean? Well, when the properties are taken back by the bank at auction, they are often taken back for the value of the mortgage on the property. The bank puts in the bid for the value of the current mortgage and essentially pays itself back what it lost on the loan, and of course gets the house for all its trouble. In good times, the bank could profit by selling that house for more than the value of the loan, but not these days. The trouble now is just the opposite. On so many of these foreclosed homes, the property is actually worth far less than the mortgage on it. So the bank is taking it back at the mortgage value and not writing it down.

"Untold numbers of these properties sitting on banks accounting ledgers where the imputed value is considerably higher than the market value," says Sharga. And unfortunately nobody knows what that market number is.
http://www.cnbc.com/id/28898377

Views: 123

Reply to This

Replies to This Discussion

Man the shiot has yet to hit the fan.
and when they squat the swat team comes. damn if you do and all.

RSS

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega commented on Doc Vega's blog post Memorial Weekend Getaway Horror Story
"Less Prone thanks for your support Buddy! "
12 hours ago
Doc Vega replied to cheeki kea's discussion Would-Be Trump Assassin Ryan Routh Gave Many Interviews with Mainstream Media
"cheeki kea, I really appreciate the reporting of Sky News. I think they've done a great…"
13 hours ago
Doc Vega posted a blog post

When

 Sad blue eyed poet rehearses his craftJust took a salvo in the compartment aftHis chances of…See More
13 hours ago
cheeki kea replied to cheeki kea's discussion Would-Be Trump Assassin Ryan Routh Gave Many Interviews with Mainstream Media
"You're damn right there Doc V. but we may never know exactly where all the funding came from…"
17 hours ago
cheeki kea commented on tjdavis's photo
Thumbnail

Me-Again

"Oh Look a new version of Megan, can't say the old version looked to flash either. Seems like…"
21 hours ago
Doc Vega replied to cheeki kea's discussion Would-Be Trump Assassin Ryan Routh Gave Many Interviews with Mainstream Media
"This asshole had an incredible number of overseas connections and incoming money from unnamed…"
Wednesday
rlionhearted_3 posted photos
Wednesday
cheeki kea replied to cheeki kea's discussion Tartaria
"It's been interesting reading the comments from the Hungarian Tartaria fans on social media…"
Tuesday
Burbia's blog post was featured

James Comey appears to call for the assassination of President Trump

I'm sure these are the kind of shells Comey is implying here. …See More
Tuesday
tjdavis's blog post was featured
Tuesday
cheeki kea's 2 blog posts were featured
Tuesday
Doc Vega's 5 blog posts were featured
Tuesday
Less Prone commented on Doc Vega's blog post Memorial Weekend Getaway Horror Story
"A nice story"
Tuesday
Less Prone favorited Doc Vega's blog post Memorial Weekend Getaway Horror Story
Tuesday
Doc Vega posted a blog post

Memorial Weekend Getaway Horror Story

The wife and I had been trying to find some vacation time together for weeks when finally Memorial…See More
Monday
cheeki kea commented on cheeki kea's photo
Sunday
cheeki kea posted a photo
Sunday
tjdavis posted a video
May 24
Doc Vega commented on Burbia's blog post James Comey appears to call for the assassination of President Trump
"Goes to show what ruthless bastards we have in the federal government!"
May 24
Doc Vega favorited Burbia's blog post James Comey appears to call for the assassination of President Trump
May 24

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted