The banks have a new way of messing with the RE marketplace

Nobody can argue the statement that it was lenders, unscrupulous or otherwise, that led us into the real estate meltdown. And, really, lenders equals banks. They led us down the garden path, and now they are reaping what they sowed. They've foreclosed on their defaulted properties and now they have ownership of homes that are losing value by the day.

Nobody can argue, either, that the bank-owned and pre-foreclosure properties' sales have been driving down market value everywhere. Every time a bank has approved a "fire sale" priced home in order to get it off their books, that sale has created a statistic that drags down the price an owner can expect to receive from their home.

But, things were starting to move. Sales stats were ticking up. Loans were being approved and actually financed. Buyers with good credit and a down payment were able to qualify for the lowest interest rates available in years.

Now the banks have changed their game plan again. Now, they are LISTING THEIR PROPERTIES FOR LESS THAN MARKET VALUE. Significantly less. And are hoping to start bidding wars. A full-priced offer goes without a response. An offer for twenty thousand dollars over listing price contingent on financing is rejected over a cash offer for the list price.

I'm all for a competitive marketplace. It's what a free market is built on, but a family home is the lynch-pin of the American dream and these banks are, once again, screwing with peoples' ability to make that dream a reality. Because, now, potential home owners are being lied too. It looks like they can actually afford to buy a home. They go and get pre-approved (and take the hit to their credit report), make an offer, and then are out-bid. It's just not right.