Wednesday, June 24, 2009
Here's a perfect example of the so called "phantom inventory"
7413 Pebblewood Ct in Riverside. This 3000 s/f home was purchased at the peak for $665k. The lender got it back in August of 2008. They tried to get $417k at the trustee sale but there were no takers at that price so they bought it. The bank has owned this home since Aug 6th, 2008. It just hit the market at the beginning of June! The bank has had this house for 10 months, and are just now getting it on the market.
This makes no sense to me. They certainly would have gotten more for this home a year ago than they will get for it now. Plus the holding costs and misc other costs they have accrued will add to the total loss. It's just stupid for these lenders to hold back the homes. Especially now, the inventory is low and there are some buyers out there.
There's also a pretty good article in the Washington Post on the problem of Phantom Inventory.
Or this story about 15,000 foreclosures that got "lost"??huh.....