The last time we were updated about this overpriced train car we were informed:
The status was "Active" and changed to "Contingent"
Whoops:
The list price was "$426,000" and changed to "$414,000"
The status was "Contingent" and changed to "Active"
This dummy's been wasting everyone's time since February of 2008. And after dicking around and jacking up the price in anticipation of the Spring Bounce and Super Summer Selling Season, he's quickly finding out how foolish that greed-faced approach was.
One more price cut and he'll be back to his May asking price. What a waste.
To be fair, this might not entirely be the short seller's fault. The bank might be dragging its heels on accepting market value (which, as is obvious by now, is not anything above $399,000).
As you have probably figured out, this house is technically on the MLS but is not actually for sale--the bank has no interest in selling for anything less than a WTF price. This qualifies as shadow inventory.
It will eventually become REO, but thus far the lender has done a fantastic job of keeping this thing in limbo and avoiding realizing a loss on its books.
We're talking 550+ days on the market here, folks. And this is happening all over. Those expecting a tidal wave of REO to hit the market all at once have to ask themselves: Given the eternity this distressed property has been (essentially) kept off the market and kept off the bank's books, what government or regulatory entity will suddenly step in to ensure another 550 days don't transpire?
Yeah, it does seem that the waiting game for the properties to come out of the shadows is endless but as our friend Dr. Housing Bubble says, there's only a finite amount they can hold back. I liken it to a carpet that you keep pushing dirt under - eventually you won't be able to walk on it...
ReplyDeleteyikesboy
Great Blog, hopefully you'll save a few sellers from their own delusions.
ReplyDeleteSpeaking of delusions, you've gotta check out this ridiculous listing from the bixby knolls area:
http://www.redfin.com/CA/Long-Beach/3962-Cedar-Ave-90807/home/7525777
Is that price a typo??
good god LB1, the realtor had to mistakenly added a 1, right??? right????
ReplyDeleteDid you see that the listing EXCLUDES the fridge and the Garage lighting.. But it does have an electric stove top and nice blue and peach/pink paint!!!!!
oh man, this is a very nice listing for a very nice post El Bee!!!!
I just checked Property Shark, and this house hadn't had any permitted work since 1997.