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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Don't be so certain... Posted by Alfred -- CA on December 24, 2009 at 10:04 AM In Reply to: Don't be so certain... posted by Skeptic on December 22, 2009 at 2:20 PM Banks are holding back on carrying through with foreclosures, and they've only been gradually releasing their existing REOs in increments. I think for three main reasons: 1) they don't want to rapidly depress home prices (because then their assets become worth less), 2) they don't want to show plummeting asset values on their balance sheets because they'll be undercapitalized and shut down by the FDIC, 3) they are stalling and hoping that the government comes up with a solution. This is why the flood of foreclosures we expected in 2009 never came. We are going to have as many defaults/foreclosures again with this next wave (apparently we are only at the mid point). It will be interesting to see how government and lenders deal with them. Hard to predict what will happen when you've got The Fed, US Treasury and Congress intervening. Next few years will be very interesting for us real estate investors. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Banks are holding back on carrying through with foreclosures, and they've only been gradually releasing their existing REOs in increments. I think for three main reasons: 1) they don't want to rapidly depress home prices (because then their assets become worth less), 2) they don't want to show plummeting asset values on their balance sheets because they'll be undercapitalized and shut down by the FDIC, 3) they are stalling and hoping that the government comes up with a solution. This is why the flood of foreclosures we expected in 2009 never came. We are going to have as many defaults/foreclosures again with this next wave (apparently we are only at the mid point). It will be interesting to see how government and lenders deal with them. Hard to predict what will happen when you've got The Fed, US Treasury and Congress intervening. Next few years will be very interesting for us real estate investors. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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