Banks Refusing to Put Foreclosed Homes Over $300,000 on the Market

[mEDITate-OR:

not even try to re-read both this story and the comments to it...

This is a VERY well researched article, and presents U.S. with a very amazing conundrum...

ARE they doing it, and if so, WHY?

and what, if anything, will happen..., and when...?

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John, Benny, Keith - there may be another wrinkle, or two, in this, as we wrote to Keith. Another article presented U.S. with a thesis - that under the servicing contracts, especially the newer, post 02 "securitized RE loan" ones, after the foreclosure the bank is NOT required to immediately pay off the investor; that they can and are holding those funds, to invest as they see fit; AND that they are entitled to keep ALL of the profits that they make on those funds.

And, no, John, that does explain why they hold them pre-forclosure. Unless, and here is a question for you (and me too): "Who PAYS for the upkeep?" Do the servicing banks eat that cost? We doubt it. Do they "charge" the owner/investors? It that expense being treated as a Mechanics Lien against the loan amount/proceeds? So, if they pass on the maintenance costs, keep being paid to "service" the loan, and get to invest/use the money wherever, AND keep all the profits..., well, as Dame Agatha would point out That IS a Motive

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Banks Refusing to Put Foreclosed Homes Over $300,000 on the Market

http://seekingalpha.com/article/215373-banks-refusing-to-put-foreclosed-homes-over-300-000-on-the-market?source=email

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FORECLOSED HOMES ON THE MARKET as of July 16, 2010
Location	Repossessed Homes	Repossessed Homes on the Market	Repossessed Homes Over $300K on the Market
Cook County, IL	28,829	1,292	29
Miami-Dade County, FL	10,858	983	11
Orange County, CA	6,270	227	85
Bergen County, NJ	615	31	4
Cincinnati, OH	2,914	184	1
Seattle, WA	946	51	8
Nashville, TN	1,350	102	1
Denver, CO	2,782	223	10
St. Louis, MO	2,323	312	2
Phoenix, AZ	10,613	1,144	16

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