Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes
There is so much speculation among realtors, lenders, and real estate investors about the “shadow inventory.” I wonder what’s really going on behind the scenes at the banks with regard to releasing inventory? Does anyone really know the truth?
Bolingbrook, IL · Member since 2012 · 4 posts · 2 votes
14y
Banks are trying to get their paperwork back in order as far as I know. The settlement with the government for foreclosure fraud was a front for the MERS (Mortgage Electronic Registry Service) debockle. Mortgage backed securities were sold and split in some cases over 20 - 30 times but know one kept track of who the actual deed owner was that had the securitized note. I have spoken to numerous people that have gotten cold calls from their bank (Usually BAC) saying that they wanted to refinance their loan for no fee's, no appraisal, no credit check and no employment verification. This was a tell tail sign that the bank had no deed to the house on record. By creating a refi on that house it enabled them to re-create the proper paper work. I dont think you have heard the last about the MERS nightmare. By the way, I am new to biggerpockets as of yesterday and I am trying to educate myself about investing in real estate.
I have 25 years experience in construction and 5 years of experience in property management. I am still nervous about the case-shiller report that real-estate prices will continue to go down but are stabilizing. The index was down 2.6% Y over Y as of 5/29/2012 the next report comes out in 2 weeks. The report ; http://mam.econoday.com/byshoweventfull.asp?fid=451761&cust=mam#top
Homeowner · Phelan, CA · Member since 2010 · 23 posts · 4 votes
14y
Originally posted by Corey Dutton:
There is so much speculation among realtors, lenders, and real estate investors about the “shadow inventory.” I wonder what’s really going on behind the scenes at the banks with regard to releasing inventory? Does anyone really know the truth?
What is your opinion on this topic?
The other day I was at my bank and there was a sign up that offered 3.6% on a 30 year mortgage. So I asked the teller if that was for re-fi's too. He said yes, what is your LTV? I told him it was right about 100% but I was just curious. He then said. "that shouldn't be a problem, because we will loan up to 125%"
He got the deer in the headlight look for a couple of seconds.
So at my bank, it seems that they want more inventory.