Phantom inventory

There have been lot's of posts on many different blogs and even a few real news outlets about the "phantom inventory" that the banks own. Homes that the banks foreclosed on, but for some unknown reason they don't list them for sale. The theories about why they are doing this are many. The most reasonable seems to be that they do not want to flood the market with REO's. Doing so would put tremendous downward pressure on prices making for even higher losses for them.



Here's a perfect example of Phantom Inventory, 6432 High Country Cr, in Corona. This home is over in Eastvale. One of a gazillion bank owned or soon-to-be bank owned homes in the area. This home went back to the bank in July of 2008. It JUST hit the market in March 2009. That's over 7 months from the time the bank took it back. I cannot find any evidence that they tried to sell it during this time. Btw the home sold in June 2007 for $680k. Anyone smell a rat? This home is not even that large, there's no way it was worth that kind of money in mid 2007. For the bank to foreclose 13 months later we can almost be assured that no payments were ever made. That sale has fraud stamped on it in big neon pink letters. But hey, it's offered up now for $314k or $109 sq/ft.

On my way to work every morning I pass several homes (in Corona) that are empty and bank owned. They've been like that for nearly a year and I have yet to see a For Sale sign stuck in front of any of them.