It will be an even better buy in 2014, when it appraises at $60,000.
Banks have hundreds of thousands of underwater mortgages in their portfolios. They're releasing dribs and drabs, hoping that prices will continue to firm.
I think that’s the first anyone in the thread has mentioned this issue. I too wonder how much “shadow inventory” the banks still have, either because they don’t want to have to recognize the loss, or because the paperwork is so fouled up they haven’t been able to foreclose.
I have a house close to mine that I’m 99% sure is in this situation. It should have been foreclosed upon years ago.
” Banks have hundreds of thousands of underwater mortgages in their portfolios. They’re releasing dribs and drabs, hoping that prices will continue to firm. “
Yep. I just started looking at REO’s. Some people I know started buying 1 or 2 years ago, and are now up to 1/3rd upside down.