San Diego County has less than 600 Bank Owned Foreclosures or REO’s currently in the San Diego Multiple Listing Service (MLS). A year ago, we had over 3000 active REO’s.
There were 1063 and 1044 REO’s sold this June and July. There were 861 and 846 REO’s sold this August and September.
The sold prices for REO’s have been steadily rising in these months: $242K, $240K, $248K. $256K, $276K. That is a 13% increase in the last 4 months.
Of course, these are not the figures we hear in the media.
Why are there so few Foreclosures in San Diego County?
There are several opinions.
Banks are waiting till the prices go up.
Because of the TARP funds, they have been told to make Obama look good.
They are getting tax breaks.
They do not want to show the write-offs on their books. (Didn’t some banks report huge profits recently? Not the case if they report the “real value” of the assets. That will hurt their stock price.)
The best of the answers seems to be from Sean O’Toole of Foreclosure Radar, a Foreclosure tracking service. In his Blog http://www.foreclosuretruth.com/blog/sean he states that the lenders are getting more money from the Government (WE TAXPAYERS) by holding on, than they can get from the Foreclosure.
“I speculated that foreclosures had dropped primarily because of U.S. Treasury Secretary Henry Paulson's announcment to seek troubled asset relief for banks. The result being that banks are incentivized not to foreclose thanks to mark-to-model accounting changes, and an implied promise that the Fed or taxpayers will take bad loans off their hands at a premium if necessary.”
Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm
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