Often, there is such a fine line between desperation and inspiration. However, in this case the proverbial writing on the wall must be etched with blinking neon. The lenders and those that are still in the market (holding the bag) are beyond panic mode - it is downright terror.
This is especially true for those who are holding assets on their books that cannot ditch it by reducing the price and simply tick off their shareholders when they report the loss. Yes, I am talking about individual homeowners. Those that bought in the last few years and now need to unload their rising behemoth monthly payments.
For lenders it is a little easier to reduce and unload (sometimes) - take the Forrest Oak home for example. We have been watching this particular property for many moons and guess what...it ain't appreciating, unless you can say that it is negatively appreciating. I suppose that is like saying a home is positively depreciating. Boy, that is good one.
This place is down to $209,500. For Fannie Mae, who is currently sitting on this gem, there is a surface loss of about $69,500 if it is sold at the current price. I have my doubts about selling at that price, but we will see. But there is also the lost opportunity of investment that is not calculated.
In any case, since FM has had it for the last 7 months, they are averaging a loss of about $9900 per month. Here is some advice for FM - "You need to dump this dump."
Oh, and by the way, clean the carpets; it is doubtful, but it might help.
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