Comments on: REOs: Looking Ahead to 2010

By: Sherwoods Independent Property Consultant

Sherwoods Independent Property Consultant — Fri, 23 Oct 2009 06:10:28 +0000

A very nice article which explains the future plans of REO’s by explaining them in 4 major points. ..for more services and Related properties in India…

By: Marian Bennett

Marian Bennett — Wed, 21 Oct 2009 23:54:24 +0000

Hi Scott,
Thanks so much for writing about this and attending these conferences that many of us can’t get to. The question of what will happen with the reos that have not come to market yet is a big question on many minds! I’ve also heard that some banks may be negotiating with investment groups for bulk purchases. Based on the numbers we’re hearing about, I find it hard to believe that they will be dripping the listings to market based on local conditions. I’m told they don’t have enough staff to manage what they are already doing. Does this mean more hiring for this sector?

By: FloridaTaxSale-Foreclosure-Info

FloridaTaxSale-Foreclosure-Info — Wed, 14 Oct 2009 21:10:50 +0000

We submit many offers on bank owned property and lately few are accepted. I know this is due to those reasons listed in the above article. In the defense of article and argumentatively to None, Why would banks further their demise by off loading homes to circumvent carry costs? When trickled out over a longer duration they can more than compensate for the carrying cost due to increased pricing and at the same time not further the hurt felt by the masses as they watch their property value diminish. We also purchase, rehab, rent or sell and have done so for decades in Florida.

We have been informed by realtors/mortgage brokers in our area that the lenders are conducting a gut check. The prevailing question seems to be, Are the carrying costs and fees for property management worth carrying the home for 6 months in an area where there is great potential for a higher return? We have been told the answer is determined by zip code and property. As always, it comes down to location and curb appeal.

I find this site and your articles to be well written and insightful.

By: Andrew Davis

Andrew Davis — Thu, 08 Oct 2009 17:50:06 +0000

Dear none,

Although you preface your second comment with “not to be argumentative”, that is exactly what you are being. Both of your comments lack any benefit whatsoever, and reading them left me confused as to your purpose and annoyed at your tone. Blog comments are meant to be contributive, and your’s are anything but. However, you seem to espouse such knowledge about the market, maybe you should start your own un-anonymous blog so we could all glean from your profound market insights and experience.

By: Does Autumn Mean ‘Fall’ for the U.S. Housing Market? | Reaction Radio

Wed, 07 Oct 2009 11:02:07 +0000

[...] 1. Inventory levels continue to fall. Still awaiting the slew of REOs that are expected to hit the market (if you believe that banks will releases these all at once…) [...]

By: none

none — Thu, 01 Oct 2009 13:49:00 +0000

I left the first commment, and not to be argumentative, but RM’s comment is also worth responding. I do this is Michigan for disclosure purposes, so I don’t know the ATL market. However, RM’s comment seems to imply that he misunderstood the author’s argument. The author is arguing that the Banks are NOT LISTING properties, not RM’s understanding that the banks ARE LISTING the properties but not accepting reasonable offers. That huge difference in argument aside. RM put your money where your mouth is: Give me one MLS number and the supposed “reasonable offer” you submitted. Shouldn’t be too hard to prove your point should it?

By: AtlantaRealEstate

AtlantaRealEstate — Thu, 01 Oct 2009 02:41:04 +0000

Item #1 is the best explanation I’ve seen for why a lot of banks won’t accept even reasonable offers on foreclosures. Been seeing this a lot in the North Atlanta Area.

By: none

none — Wed, 30 Sep 2009 13:00:40 +0000

Well, you left room to respond. I came on here in an effort to figure out when the inventory is coming back. I buy foreclosures, remodel, and rent or sell. I can tell you that the banks will NEVER hold on to property that could be on the market. If you own a home, you should be able to tell me why, but since you don’t in your article, I’ll tell you: CARRYING COSTS.

Here’s a few carrying costs: taxes, insurance, property maintenance, winterizing, code compliance, and I’ll throw in depreciation and damage.

If you own your own home, call your insurer, tell him your house is vacant as ask for his cheapest rate. Vacant properties are sometimes not insurable except by the most expensive due to high rates of claims.

Where is the property? You think a home makes it thru a summer in the south with 90% humidity unscathed. Your at the least going to be re-drywalling and painting. How about the winter? Hows your plumbing? Does the basement ever get damp? Did you call the mold remediator b/c the house sat empty for three years (well not empty of all living organisms, just people). How about that brand new furnace, a/c, plumbing system, hot water heater? You gonna let them all depreciate? Same goes for the roof?

So, fees, depreciation, and depreciation as a result of damage. Still want to roll the dice on a better market. The banks here don’t dare. This is an argument that exists in the classroom only.