Shadow Inventory of Homes
foreclosure homes
Standard & Poor’s says their estimated liquidation timeline covering the nation’s backlog of distressed real estate actually increased in the past few months.
The ratings agency now estimates it will take 44 months — up 25% percent from an estimate made just three months ago — to clear the so-called shadow inventory of homes in distress or foreclosure, but not yet on the resale market. Some markets are significantly more impaired when compared to others, the agency concluded.
In September, Standard & Poor’s estimated it would take 40 months.
“Our recent estimates of months to clear have increased primarily as a result of the deceleration of the distressed property liquidation rate rather than a rise in overall distressed property levels,” according to analysts in a research report emailed to HousingWire.
San Diego real estate market
Home Foreclosures and Shadow Inventory
home foreclosures
So when can we expect to see the surge in home foreclosures from shadow inventory? (Shadow inventory is made up of all the properties that are in foreclosure or headed toward foreclosure that haven’t hit the market yet.) There are 7 million homes in this shadow inventory category. What the government isn’t telling you is that their foreclosure moratoriums and loss mitigation programs created a huge surge of foreclosures that are about to pop.
