I attended a seminar last week on the current bank conditions which are affecting our Las Vegas Real Estate Market. The three largest bank services were in attendance. They were Bank of America, Wells Fargo and Chase.
All three companies were adamant that they are not holding back any shadow inventory of foreclosures. This is a very hot topic as of late as there is a major shortage of homes on the market currently in the Valley. They all indicated that one of the reasons that we have a shortage is that all of the banks are working on new ways to help people stay in their homes. All of the banks agreed that they feel there will be more short sales and fewer foreclosures in the future and they hope to improve their effort in home retention.
Another topic that was discussed was if the banks are going to be renting back homes to keep people in them. They all indicated that they are not going towards this trend in the future. Although Bank of America has begun a program that allows some homeowners to remain in their homes for a few years, they are not looking at this as a long term solution.
All three banks are working on cutting the time it takes to successfully close a short sale. They are currently running in the 90 day range as an average but they all hope to improve that to around 30 days for a bank approval on the sale.
All in all it was an informative seminar as it was a good educational opportunity to hear the issues from the banks side.