It’s no surprise to learn that banks have been sitting on foreclosures so they don’t depress an already shaky real estate market. However we find it quite interesting that banks have jumped into the landlord game with reckless abandon. We have heard from a few sources that about 25% of the Freddie, Fannie and B of A maintain these REOs as rentals. Instead of walking into your local bank looking for loan perhaps we should all ask our neighborhood banks if they know of any good rentals. Hello Mr. Landlord
We get it that the banks don’t wish to flood the market with their REOs. We don’t quite get there willingness to play landlord especially given the risks, insurance, liability, taxes in the hope that they can successfully maintain some sort of price balance in the real estate market.
Most banks can’t even seem to create an accurate value on short sales so good luck to them to do the same for their REOs.