http://www.forbes.com/sites/danielfisher/2012/02/07/mortgage-settlement-talks-look-like-tobacco-ii/
I waited most of 2011 for the for closer market to pick up steam again from the 2010 robo signing scandal. I'm hoping this will be what opens up 2012 for more bank forclosers. It was kinda odd that most of the properties i bought were from Fannie or Fredie last year. lol, nah, it's not odd
The gov jumped on the scandal and dumped there inventory of properties, while the banks got slowed up.Fannie/Freddie released a ton of their inventory and the banks were probably dealt a positive hand. In many markets where shadow inventory was high 2-3 years ago, the release of government owned homes caused a frenzy of buying from investors, low interest rates, etc… It was the perfect scenario to take the hardest hit markets and inject a boost in the lower end median, which is where the majority of the homes were repo'd.
Although banks continue to bleed reserve requirements and foreclosure costs, the average price of a house in SW FL jumped almost 20% in the last 18 months. Profit, wash, or loss? Probably a profit, or a lesser loss. I use FL as an example because that is what happened and I'm assuming similar trends in NV, AZ, or hardest hit markets.
On the other hand, if you knew how much banks lose by tying up a single home, it is amazing. They lose by having to put aside reserves at astonishing amounts. These reserves in addition to the money tied up in the home disallows them to re-lend that money.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
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The gov jumped on the scandal and dumped there inventory of properties, while the banks got slowed up.
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