The foreclosure market is very hot at the moment. Almost every bank owned foreclosure that is available is getting multiple offers. The reason that they are in such high demand has a lot to do with the time it takes to buy a short sale. Although the amount of short sale homes on the market is much higher than the amount of bank owned property, there is much higher demand for bank owned homes. The main reason for this is the fact that it usually takes a lot longer to get a short sale deal to close. A lot of the time it can take around six to nine months for a bank to respond to a short sale offer. Many buyers do not wan to wait that long to buy a piece of property. When purchasing a short sale buyers need to to come to an agreement with the seller and with the bank that has the loan on the home. Once the buyers offer has been accepted by the seller then it goes out for approval from the bank. Waiting for approval from the bank is usually what takes a long time. The banks can also decide to reject the offer, even if the seller agreed to it.

There is a shortage of available foreclosures now, but it seems as though that is all going to change. The amount of homes that are in the foreclosure process at the moment is staggering. According to an internet foreclosure tracker, there are a lot of homes in that are currently in the foreclosure process. Most of these homes are not going to get cured because the economy is bad and most people are not going to be able to make up the back payments. On top of the borrowers who are in foreclosure at the moment, there are almost as many home owners that are in the pre-foreclosure process as well. Most of these home owners are also going to loose their homes. What this means is that there is going to be a huge flood of bank owned homes in that are going to hit the market. If the banks try to sell all the homes that are being taken back, then the market is going to be effected.

If all these homes that are being foreclosed on are put up for sale it seems like the demand is not going to be able to keep up with the supply. At the moment prices are rising because of the low supply and high demand. Homes are being bid up above their asking price because of the amount of people who are making offers on them. There are not many homes available so the ones that are get bid up. It seems like this is going to change as soon as the supply starts to increase. If the supply increases to the point where all the buyers are satisfied, then the market will probably remain stable and still increase modestly. If every home that is in the foreclosure process right now is put up for sale, it is more than likely that the supply of homes is going to be so great that the market will have to drop. Most people think that there is no way that the market is going to drop again any time soon. It just seems that with so many homes that are going to be available that the demand is not going to hold up.

The banks might be trying to figure a way not to flood the market and cause the market to drop. Even now many banks are holding off on selling a lot of the homes that they have taken back. They are selling some of them but are not putting many up for sale. Nobody is quite sure why this is happening. It is however keeping inventory down and keeping prices up. Many borrowers can live in their homes that they have lost for up to a year or so before the bank decides to evict them and put the property up for sale. This is not always the case, sometimes the bank will sell the properties as soon as they get them. It just seems that eventually the banks are going to have to get rid of all the homes that they have taken back. Maybe they will try to only sell a few at a time so the market keeps rising. Regardless of which way it goes, there is still going to be a lot more bank owned foreclosures available. Hopefully there will be enough inventory to meet the demand, and not so much that the property prices start to drop.