There has been a lot of debate about the amount, and even the existence, of shadow inventory. For the unitiated, this is inventory of foreclosed homes that the lenders, for whatever reason, have not yet decided to release onto the market. Many feel that it also should include homes that have not yet received their Notice of Trustee Sale even though they are well past three months deliquent.
Regardless of how you felt in the past, I think we all have to agree that with the current foreclosure moratorium being imposed by some major lenders, this inventory is a reality. The shocking news to mw was how much of it the writer of this article feels still exists.
It was also interesting that the article mentions that most modified loans end up in foreclosure. I have found that to be the case here in Maricopa Arizona but was not aware that this was ma nationwide problem. I guess I should have figured this out as most of the modifications that I have run across are only temporary fixes and do not deal with the real problem facing many home owners, lack of equity and no hopes of having any in the foreseeable future.
Comments(2)