Shadow Inventory

A few weeks back I wrote an article on “Shadow Inventory” which in part consists of Foreclosed homes that Banks own (REO’s) that have been held back from sale for one reason or another. Most of the time it is because the bank involved has been overwhelmed with 100’s and in some cases thousands of these properties. The Banks are finally adjusting to this situation and have increased staff and become more proficient in dealing with these properties. Not only have they streamlined their policies for dealing with “short sales” they have also gotten better in negotiating with people who have fallen behind in their mortgage payments. Short sales in a lot of cases are answered in 45 days or less instead of several months if ever. Not all institutions are up to speed but a lot are. The fear that all these properties would be dumped on the market all at once further reducing property values is subsiding. Another piece of positive news for the Real Estate Market.