Good post Chris. I agree with you - on the surface holding looks like a good strategy, but lenders typically way underestimate the headaches of ownership, and once they experience them they get rid of their REO and go back to lending.

I agree with the vintage and the exurb observations. The inset map also can be used to demonstrate the correlation between underwater homes and lower income neighborhoods (I've posted a map showing income levels for the corresponding area at the link below).

http://residentialpropertyanalytics.blogspot.com/...