In this article, DBRS cliams that foreclosures will flood the market in 2011 resulting in deep discounts. I won't argue with them but my question is what are the lenders holding on to their shadow inventory?
In Maricopa Arizona we are in the midst of our annual seasonal buyer fenzy and inventory is shrinking. We had over 960 active subdivision listings before the robo signing fiasco and now, due to the self imposed and Holiday moratoriums, we are hovering around 650, a drop of over 30%!! I can understand the lenders not wanting to flood the market and therefore decrease values but this is ridiculous.
Since I am a short sale specialist in Maricopa Arizona, I cannot understand why the lenders are, at times, refusing to extend sale dates when I have an offer on the property only to sit on it for months when I could have had it closed. I am also frustrated with them turning down perfectly good offers just because some agent that knows nothing about our market is doing a BPO that prices the home way above what any reasonable person will pay. Doesn't matter how many comps and how much history I send them, they would rather take the word of someone that is bring paid $50.
Sorry to vent but I just with they would start writing articles on how inefficient these lenders and servicing companies are. JUST RELEASE THE HOMES AND I'LL GET THEM SOLD!