Bank of America announced that there are going to be 500 REOs that will be released per month this year, totalling about 6,000 total in Clark County. Most of these properties wil be released to agent who have little REO inventory so they should get quick attention. The downside is that the new tenant laws make evictions even more difficult. Occupants have 90 days before they can be evicted, and they have been less likely to accept the “Cash for Keys” option since the laws changed.
The other not great news is that B of A is not the only other bank that will be releasing properties. Fannie Mae and Freddie Mac will continue in 2010 and 2011 to flood the market with foreclosures, as well as numerous other banks that have been artificially holding back foreclosures. The effect of this will be that values will get hit again as sellers compete to get their homes sold based on price, and agent agressively comp properties in order to ensure theirs are the ones that sell.
The good news for buyers and their agents is that there should be an easier time getting a home since the inventory will be much greater and the multiple offer situation should be less pronounced. All-in-all 2010 will be a good year for real estate in general, with this bloodletting a required evil to bring back a normal balance to a market that was inflated and destroyed seemingly overnight by the torrent of easy lending policies and investor driven speculation.
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