Wednesday, March 19, 2008
Bank Auctions vs Short Sales vs REOs
The banks are understanding how to get the best prices for their new inventory of homes. Advertise the hell out of a public auction, cram 5,000 people into the Cow Palace (or any other convention center of choice), provide easy financing to all who have a FICO score anywhere near 600 and price these homes at ridiculously low prices. Recent example: $550,000 value Belmont home, now REO, listed in brochure for $275,000 - what a deal! - 10 buyers bidding on this home and one "winner" happy to take the keys for $620,000! Good luck with that one. This makes sense why banks are more apt to let a property go to foreclosure than deal with a short sale.