‘reports about Big Money moving in and buying up lots of distressed properties’
What’s the implication? Buy now or be priced out forever. IMO this is a cover for the shadow inventory issue.
I went over this recently, but to touch on a couple things; you are talking about Freddie/Fannie/HUD. They’ve got the bulk of the inventory. HUD has a strict policy on allowing primary owners first shot, and I haven’t heard of them selling in bulk after that. Let’s look at the GSEs:
‘Fannie Mae plans to sell nearly 2,500 foreclosed properties to investors in the first phase of an initiative to aid the U.S. housing market through bulk sales of distressed homes. Investors will be able to submit bids on the entire portfolio of properties, but also will be able to submit offers on all the properties in any given market. The FHFA didn’t specify a timeline for the auction process, but the pilot sales could take place over the course of several months, said people familiar with the matter.’
‘The initial round of sales is unlikely to have much of an impact on these housing markets because the properties are already rented. They represent a tiny sliver of the more than 140,000 foreclosed properties that Fannie currently owns.’
‘The number of foreclosure notices issued in the Tucson area spiked in February after ebbing for the last several months. In Pima County, 918 borrowers received notice their mortgage loans were in default and their property had been scheduled for auction. That’s a 20 percent increase over February 2011, and a 30 percent increase compared with January, data from the county recorder’s office show.’
‘Foreclosure filings in the county and across the state are actually down significantly — in Mercer County, foreclosure filings dropped by almost 74 percent from 2010 to 2011, from 2,489 in 2010 to 651 in 2011, according to the state judiciary. But that doesn’t tell the whole story. New foreclosure filings in New Jersey were almost completely halted in 2011 amid litigation and investigations into lender paperwork and so-called ‘robo-signing.’
‘With a decision rendered in one of the lawsuits last week, it’s likely thousands of foreclosure filings pent up in the pipeline will be released.’
One county in AZ will add more inventory than the ‘pilot program’ totals in a couple of months. The judicial foreclosure states have a mountain of houses in default.
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