Inland foreclosure auctions draw more sales as lenders get more flexible about prices
Investors bought more foreclosed homes on the courthouse steps in California last month, reflecting a growing willingness of lenders to accept more deeply discounted bids, ForeclosureRadar, a Web site that tacks foreclosure auctions, reported Wednesday.
Despite more than 97 percent of the foreclosed properties being returned to the lender after auction, there was a 34.6 percent increase in properties purchased by third parties, which most likely were investors, the report said.
Sorry but 3% is not an upturn, it is noise. In fact what this implies is really bad news. not only are the banks not availing themselves of the courthouse steps option but likely there is a rise in the number of people with equity starting to default. Remember, I predicted that last year. The blogosphere is worried that people 10% underwater are going to walk. I'm worried that the really smart homeowners who have 10% equity are going to see the value of defaulting. Think about it. A years free rent, no taxes, no HOA. Your paltry 10% equity is evaporating over that time anyway and you can't sell. Besides those bloodsucking realtors aren't going to get another 6%. Heck, Countrywide might even give you a nice $2500 severance package.
12 months of ruthless squatting gives you a full down payment on a better house. Sounds like a plan.