Will Shadow Inventory allow buyers to negotiate with lenders?
By: Myles, December 30th, 2009
Shadow inventory properties are homes that have not been tallied into official inventory numbers tracked by Realtors and other real estate professionals. They include homes taken back by lenders through foreclosures and similar actions, as well as homes whose owners are at least 90 days delinquent on their mortgage payments.
A variety of measures to keep discounted bank-owned properties off the market — including moratoriums on foreclosures by major lenders and federal initiatives aimed at keeping people in their homes with mortgage payments they can afford — has helped increase a backlog of so-called shadow inventory by some 55% in the year ended Sept. 30, 2009, according to a report released Thursday by First American CoreLogic, a Santa Ana-based real estate research firm.
Will this shadow inventory enable buyers to negotiate strongly with lenders to pick up properties at pennies? CLICK HERE to read story.
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