Banks that are flooded with foreclosures have been dumping them on the market and bargain hunters are having a field day but some investors including Mark Partipilo, a Las Vegas real estate investor concludes that “In this market, there are so many REOs that the banks are getting their clocks cleaned.  This might not be the bottom, but waiting six months might be too late”.

Banks might be reluctant to sell cheap but most are agreeing to do so as these sales are a reality of today’s market. 

Markets where a large share of homes are heavily discounted because of REO sales, they may be seeing a bottom’ says Cynthia Kroll, an economist and real estate market scholar at the University of California, Berkeley.

Source:  Reuters News 07/02/08