Crazy, crazy, crazy. One of the agents at my office just got an assignment for an REO. That’s great. Agents love REO assignments, and this wasn’t his first.
Here’s the crazy part. When I was going over the paperwork, I noticed that the property had been foreclosed upon by the lender in 2008. I couldn’t believe it, so I actually asked a title company to double check that date for me. And, yes, it was true. So, here’s the clincher: the property is still occupied. (Talk about livin’ large; that’s almost three years without making a payment on anything except utilities.)
In our constant mumblings and grumblings about the distressed property market, we always talk about the famed shadow inventory. We wonder when the banks will unleash the shadow inventory of REOs on the world and we also wonder how that will impact the housing market.
It seems to me that allowing individuals to live in properties for years at a time probably isn’t a good thing either. That being said, with all the money that those folks I mentioned saved in rent, they were able to help infuse our local economy with more hard, cold cash—shopping at Target, going to the movies, hitting the malls.
So, what’s the world coming to? Is it better for the economy for banks to hold these properties back? Or, is it better for sellers to sell their properties in a short sale?
What say you?
If you are interested in more articles about short sales, foreclosures, and the famed shadow inventory, check these out:
Photo: flickr creative commons by Slava