Some Banks are So Blind 1

bank of america shadow inventoryTalk about getting your wires crossed, or getting mixed messages, or mixing your wires, or something or other – ok, I’m losing my train of thought here. Oh right, back to my point.

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?

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One thought on “Some Banks are So Blind

  • Terry McGovern

    The banks are muni pulsating the data to satisfy this administration and their own bottom line and are just lying. Along with that the NAR is lying as well due to the lack of realtors paying their salaries and trying to get the million plus realtors that dropped out back in paying dues. The banks want prices to rise to avoid their losses. Truth be told there is more foreclosures in the so called shadow inventory than they want to admit and the numbers will eventually come out and the public will be outraged. This administration is doing exactly what got this country in this mess. I have said all along get the government out of this and let the private sector clean up the politicians biggest fraud to ever face this nation. As the real estate market goes so goes the wconomy