Is REO Surge Coming to California???

I was reading this article by Mr. Mortgage:

http://mrmortgage.ml-implode.com/2009/01/27/ca-housing-market-beneath-the-headlines-reo-surge-to-hit/

He does provide some solid data on the surge of REO's coming.  I also found it interesting to see "organic market" analysis.  I found his analysis pretty solid.  The part that no one seems to want to face by all of this is that our government, media and real estate/finance industry cannot speak the truth, it would make the matter much worse.
  • January 27 2009 - Sacramento
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Answers (4)

I've been watching the numbers of foreclosures climb for months and wondering what happened to all those homes. They're not showing up in MLS. So, yes, I think banks are sandbagging, waiting for the spring market.
It's unlikely that they are selling them all in bulk to investors. Some banks might be renting out the homes. Even though their charters may prevent this, all they have to do is deed the homes into a holding company and then rent them.

But I do suspect a flood of foreclosures is coming. Whether they will all hit the market at the same time is questionable, but inventory appears to be superficially low. Keeping inventory down increases demand.
  • January 28 2009
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It's about to hit Denver. A huge surge of BPO requests has begun this week.
  • September 07 2012
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Profile picture for Jeff Grenz
The flood of foreclosures we've been predicting for the last 2-3 years.... not coming.  A growing group of hedge funds with BILLIONS raised are harvesting distressed properties at many levels - from the retail market (MLS),from the court house steps during  foreclosure sale, and direct from lenders in bulk, often as just the acquisition of poor performing notes.  A single entity acquired approximately 170 homes over teh past 90 days in the retail process alone.  Its hard to track these sales as often various entities (multiple owner names) represent a single source of funds.

In California, despite the dominance of cash buyers below $200,000, short sales are growing as market share while REOs (bank owned) diminish.
  • November 11 2012
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short sales will continue to dominate the market...

  • November 12 2012
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