Banks often hope to sell foreclosed houses at a profit. But they don’t always hold the sales of these properties just for gaining profit. In many cases, there are too many houses to be put up for sale.
If they list all of them in the market for sale, the housing market may eventually change its course. This is good for buyers but bad for banks and other home sellers.
Sometimes banks try to sell some of these bank-owned property pools back to defaulted owners, and investors, or rent the home to release some of their piled-up real estate inventory.
Of course, the experience of investors in these pools is not always favorable they might be stuck with immovable real estate inventory.
This might release some of the bank’s real estate inventory but the investors are left with the fallout.