Sheep, do you think the foreclosed Bank Owned properties are listed at an asking price that is subject to the customary bid by a buyer if they would like the property, but maybe the price point is not perfect for the buyer? Is it like the short sale?
REOs are very unlike a short sale as there is no encumberances on the property. IME, banks aren't taking huge losses on lots of properties unless they are capital-heavy and can afford the write downs.
WTS, all bets are off these days with REDC shill-sham auctions of thosands of homes, banks who are thriving, banks who are dying and the soon gummint controlled MAC system. An REO is lienless which is a hyooge advantage and supports their nearer appraisal pricings. Bargains? Hardly, since house depreciation (physical and financial) has to be factored into usually overvalued REOs.
What they all try to do is to mitigate
overall losses so they may sell a few homes low (but these homes already may have low principal balances).
Most of the banks down here have an offer-counter-offer-counter-counter-offer system for buyers to show due diligence to shareholders.. Even though Lee/Collier leads Florida in foreclosed and REOs, there have yet to be any significant fire selling.