brickcityman (< 20)

brickcityman's CAPS Blog

Pause in foreclosures = rise in home prices?

Recs

8

Report

October 08, 2010 – Comments (7) | RELATED TICKERS: BAC , ST , UNT

So now it appears BofA is halting foreclosures in all 50 states (sucks to be Puerto Rico and The U.S. Virgin Islands). And a number of other banks are following along with similar PR stunts.

Does this portend a respite in home prices? Or does the fact that this is occurring in the "off season" mean the impact will be muted?

Any expected impacts on retailers as this might mean slightly more cash available for holiday shopping?

Other ideas?

7 Comments – Post Your Own

#1) On October 08, 2010 at 11:26 AM, brickcityman (< 20) wrote:

One additional thought... does this create an opening for regional banks to unload properties at a slightly higher premium in the vacuum left by the big boys?

Report this comment

#2) On October 08, 2010 at 11:38 AM, vriguy (69.53) wrote:

I think it is prudent to save up for my share of the next bailout - of these same megabanks. Somehow, they've managed to lose (or at least they cannot establish) title to the homes they're trying to foreclose on, and we taxpayers will have to make up their losses, as usual.

Report this comment

#3) On October 08, 2010 at 11:52 AM, mtf00l (50.79) wrote:

Sad but true...

Report this comment

#4) On October 08, 2010 at 12:24 PM, brickcityman (< 20) wrote:

Funny, now I understand why it costs thousands of dollars in bank fees to do anything related to a mortgage (refi, close a new loan, etc).... It's because they have to actually pay someone to read all the convoluted documentation beforehand. How odd that when they are footing the bill they don't seem nearly as concerned about spending time and effort....

Is there anything worse that shorting that you can do a companies shares? Like maybe producing counterfit shares to debase their value? I've gone from wanting to bet against them to literally wanting to hurt them.

Full Disclosure: My mortgage was acquired by BAC and as soon as I can find a responsible way to take my business elsewhere I will.

Report this comment

#5) On October 08, 2010 at 12:25 PM, russiangambit (29.92) wrote:

I think it just allows the extend and pretend for a while longer. The effect on home prices shouldn't be that much. I doubt they will rise but may be not fall as much as they otherwise would.

Report this comment

#6) On October 08, 2010 at 12:27 PM, BearishKW (< 20) wrote:

I think regardless of how this whole mess happens, home prices stay stagnant where they are right now...at the bottom.

Home prices begin to rise once jobs come back and oil prices go up or stabilize somewhere. Bottom line is people are scared to buy right now with so much uncertainty.

But with that said, I bought a home this summer in Arizona. My reasoning being that if it really gets that much worse, my least worry will be how much my property is worth. And my biggest worry will be how to keep the looters and scrappers away.

And there's no way it gets that bad.

Report this comment

#7) On October 08, 2010 at 1:02 PM, leohaas (98.74) wrote:

There will be no impact on home prices. Banks sit on a pile of foreclosed homes in many areas. All this will do is reduce the pent-up supply somewhat. Foreclosures will resume as soon as banks can prove that due diligence is done.

Report this comment