Servicers Decease Loans in Shadow Inventory????

Real Estate Sales Representative with Wizards of Waz Real Estate

There is another recent report from DSNews that quotes Moody's Investor Services as stating that lenders are beginning to decrease the shadow inventory in Q3.

I am not sure what is happening nationwide but I can state as fact that this is not the case in the Maricopa Arizona homes for sale market. There continue to be numerous homes that are foreclosed on but remain vacant, many of them for over a year. In addition, lenders continue to postpone sales at the daily Trustee auction for no apparent reason. As a result, the inventory of lender owned homes in Maricopa AZ has been relatively steady and makes up a very small percentage of our current inventory (less than 10%).

I fing one quote particularly humerous: “This is a good sign for servicers as it is an indication that they have addressed the operational and staffing hurdles they faced in the past and have begun to reduce the backlog of aged foreclosures and REO properties,” Moody’s stated.

I believe I have read similar statements at least a dozen times over the past two years. Just how long does it take for lenders to address "staffing issues and hurdles". They have been working on this since the housing market crash 5 years ago!!

Personally, I believe that we have at least another two years of clearing out the backlog of distressed homes as many homeowners in Maricopa Arizona are still deciding on whether or not to walk away or short sell.

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