Florida Home Buyers and Investors Blog

As discussed previously, banks are releasing their Shadow inventory of foreclosed homes.

Here is what we found out.  It appears that banks are able to value the asset at an inflated amount for up to 6 months, then it has to depreciate the asset over time and reflect the depreciation on their books.

As properties they have in inventory reach or get close to that 6 month window, they are releasing them to the open market.

If you are using Realty Trac or other Foreclosure search sites to see Foreclosures, you are wasting your money.  These sites do not LIST properties for sale.  They are strictly informational sites that provide some indication as to the status of the foreclosure.

We get questions every day from people asking about properties they see on these sites and asking how much can they purchase it for.  Well the short answer is $0, because the property has not been released for sale by the owner.  It's frustrating, and buyers thing agents are manipulating the market, when in fact it's the lenders who control the inventory.

I have access to every Foreclosure that hits the mark, the second it becomes available for sale.  Generally, Bank REO properties sell within 3 days of listing at or above list price with multiple bids.

Stay tuned for the Loan Modification insider information to be posted shortly.

We have been speaking in confidence with several Loan Modification reps from some of the largest banks who gave us the inside scoop on how they look at your loan.  Very cool stuff.