The Foreclosure Shadow Inventory Is Shrinking
There has been a lot of projection on the amount of shasow inventory that existed with banks and how that inventory would be on the market for years to come. That after the settlement of Robo Singing Court Case we would see a flood of foreclosures hit the market destroying prices.
It has not happened. Today the Orange County Register had an atricle on the subject that supports one of my earlier blogs indicating that there is no huge shadow inventory. At least in Southern California.
At the end of the first quarter of this year 11.8 percent of the lorgage loans were either late or in the foreclosure process. That's down from 11.96in the forth quarter of 2011 and 12.8 percent a year ago. The decline of the distressed properties is mostly due to the decrease in the people unable or unwilling to pay their loans.
So we see that the shadow inventory is not increasing at all.
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