Maryland Movers Explain Shadow Real Estate Owned PropertiesThe local Maryland moving specialists learned there's a huge inventory of repossessed houses nationwide that banks are keeping off the market on purpose. This practice isn't a secret but it is underplayed. The shadow REO prevents a large number of foreclosures to hit the real estate market and keeps prices from crashing. There's an estimated 90% of these real estate owned properties that are withheld from sale. All My Sons of Maryland found out that online foreclosure marketplace says that just 15% of REOs in the Washington DC area are for sale.
According to CoreLogic, as of April 2012 there were 390,000 repossessed homes in limbo so to speak, while only 39,000 properties were listed for sale. Back in 2009, banks were taking a different route, trying to sell almost twice that number of REO inventory. Realtors these days are asking for more home listings, so it's surprising that houses are being kept off the marke on purpose.
The local Maryland movers learned that besides flooding the market with lower prices, these REO are a liability to the lenders, possible bankrupting the banks. When banks have REOs on their books, they're allowed to value the home at the price it was originally bought for. Once the bank sells it, they have to report it as a loss (original value-the current value). Since home values have dropped almost a third, that equals major losses for the banks. REOs typically sell at a 33% discount.
Each REO affect another property that's close by and some people are saying that if all real estate owned properties hit the market, it could plunge the country into another recession. Some experts are saying, home prices could possibly drop another 20%. Some REOs are still occupied or are going through major repairs, so mortgage lenders like Fannie Mae was unable to list 48% of their properties. By holding on to these REOs, banks are hoping to hoping their properties appreciate and they can sell them at a higher price.
If you've got your hands on an REO, and are ready to move in, call the local Maryland moving specialists for professional moving services, an affordable moving quote and packing services if you'd like. We'll quilt pad wrap your furniture and make sure you're residential move is hassle-free. All My Sons of Maryland is backed by four generation of movers and has commercial move experience as well as auto moves experience.