I am a Realtor in Northern California and we have seen in the past few months Bank owner property trickle on and multiple offers come in.  I am curious if you think the Bank's are holding these properties and releasing them a few at a time?  or what?

Yvette Sloan

To some extent the answer is definitely yes but the reasons vary. It can take time for asset managers to get assigned a property when a bank is swamped with new REO's. The bureaucracy of banks make them inefficient to say the least when dealing with asset disposition. Also, the legal process of finalizing a foreclosure can take a fair amount of time depending on what State the property is located in. I highly doubt there is a coordinated effort amongst various banks to maximize the market.

I have noticed lately in my area that RE agents representing bank owned properties have been pricing REO's quite low so multiple offers come in quickly. Current market value is now being established by the bidders. It's nice to see too. We need to get away from single offer bottom feeding and get back to some sort of fundamentals. Foreclosures are going to have less and less of an impact on overall property values through the rest of the year and beyond.

Welcome to the board!

 Definitely Yes, the banks in IN are taking forever to turn these properties and they definitely have unrealistic expectations on what price they will command too.

The issue is not that they are turning over, it is the value they have on their books.  If they take a big write down on one property, the regulators will probably force them to write down all their loans.  Also, qualifying buyers for loans is difficult, regardless of the value.

Ted

So how long are they holding on to those properties?

absolutely