mr mortgage was scaring the crap out of me last night

but #s he's spitting out.. are they for real? hmm according to him, the # of homes going into foreclosure in california is like 3x the # of total homes sold, based on data of the last month or so.. now just trying to picture that in my head.. foreclosure is basically a margin call. So 3x the volume forced to liquidate... i know what that usually does to stocks, but I wonder what that does to home prices. Banks have been buying the foreclosures and holding them.. i've read that much. So not sure if they are all getting forced liquidation. Just saw the foreclosure map around my area.. they're popping up like prairie dogs.

but #s he's spitting out.. are they for real?

hmm according to him, the # of homes going into foreclosure in california is like 3x the # of total homes sold, based on data of the last month or so..

now just trying to picture that in my head.. foreclosure is basically a margin call. So 3x the volume forced to liquidate... i know what that usually does to stocks, but I wonder what that does to home prices.

Banks have been buying the foreclosures and holding them.. i've read that much. So not sure if they are all getting forced liquidation.

Just saw the foreclosure map around my area.. they're popping up like prairie dogs.

I subscribe to him as well and his latest was scary to say the least...people swear by him...I do like his honest take on the situation...but if true, look out below

Banks almost always make the lows in real estate in my opinion. The reason is that an individual cannot sell low if his mortgage balance is too high (actually technically this could be done with the banks approval, known as short sale). Once the bank takes the property back via foreclosure, the mortgage has been eliminated. The bank will get some opinions as to what the house is worth. But let the property sit too long, or let too many properties build up in inventory, and they will definitely bang the property out at whatever they have to in order to move it. If there is new lows in real estate to be made, the banks will make them. IT

Banks almost always make the lows in real estate in my opinion. The reason is that an individual cannot sell low if his mortgage balance is too high (actually technically this could be done with the banks approval, known as short sale). Once the bank takes the property back via foreclosure, the mortgage has been eliminated. The bank will get some opinions as to what the house is worth. But let the property sit too long, or let too many properties build up in inventory, and they will definitely bang the property out at whatever they have to in order to move it. If there is new lows in real estate to be made, the banks will make them.

IT

Its interesting because big multi unit properties haven't come down much but smaller things have.
Yah in my area the banks are unloading duplexes well below their cashflow valuations. The banks continue to do stupid things too. A friend of mine made a lowball offer which the bank refused. A month later they accepted a lower offer plus the bank paid the closing costs. My friend offered to close immediately with cash. Leaves you wondering....