The housing market is sooooooooo confused right now and it’s just hilarious to watch. Here’s how backwards some people are (it’s all about seeing what you want to see instead of what’s actually there):
In the 3rd quarter of last year the number of loans in foreclosure, the “shadow inventory”, decreased. Yep, less homes were waiting to flood the market at rock bottom prices.
Good thing? Bad thing?
Well, it depends on your perspective. Because here’s the really funny part. The only servicers whose junk loan stockpile did not go down are Citi and Bank of America. And what do they come out saying?
“It’s good that the numbers in the industry went down. It shows that we’ve gotten a handle on things and fixed all the problems.”
Um, right. I’ve heard that one before. But don’t they know how ridiculous they sound? There might be less defaulted loans waiting in the wings for a million different reasons – getting their act together (really unlikely), the general economy improving (true), homes being sold off faster than they default (also true), etc., etc.
So if the two worst performing banks out there think they can convince me that they’ve worked out the bugs in their system, I think I’ll take my money elsewhere. Not that I trusted them with it in the first place, but you know what I mean.
What’s your experience been? Have the banks worked things out? Or have they just learned to cheat the system even better than before?