What does Shadow Inventory mean?
Foreclosed homes and condos that banks have taken back, but have yet to put on the market.
Shadow Overhang Inventory Problem.
According to the short sales academy, there are 7 Million more coming that the government has created in this shadow foreclosure inventory. That's 2 times the amount of homes that are currently on the market now!
The government's Making Home Affordable (MHA) modification program and FHA's Hope for Homeowners refinance program DON'T WORK for borrowers that are too wealthy or owe too much on their homes.
Bank of America and other big lenders are looking at putting 1,000's of homes back on market. Bank of America alone took title to tens of thousands of homes each month towards the end of 2009. They are releasing 500 a month and plan on rolling out 6000 homes.
As you can see, the biggest mass of foreclosures hasn't even hit us yet!
So what does this mean?
If your house hasn't sold and the offers aren't coming your way in this already competitive market, it may be time to change your marketing strategy.
Now more than ever, you must have your house market ready, in great condition, priced right and professionally staged. The time is now, don't wait, catch the spring sales by getting your home ready now.
Don't delay call a Professional Home Stager today!
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How can one lender release 7 million homes? Are you sure of your facts?
That seems like a huge number, but I wouldn't be surprised.
Hi Cindy~ That is so sad that there are going to be that many more homes.... I hope that is a typo...
Hi Cindy,
I think, 7 million homes are the entire inventory owned by the all lenders. I could be wrong, anything is possible.
John
I think there's at least that many. I wonder how many of those were declined short sales! makes me mad.
Michele
Cindy,
I spoke to the B of A (a vice president of loss mitigation) and he told me there would be about a 4 percent increase in the number of distressed properties and there is no shadow inventory.
Vicki-BOA is releasing 6000 in Las Vegas and other Lenders are possibly going to test the waters.
Ross-It is a ridiculous number!
Vicki-I've ready many articles about this and they all say the same. Yes, that's the number.
John-Don't know, that's the number that's being thrown around.
Michele-I wouldn't know that, will anybody every know?
Tim-I hope he's right, but according to many different sources it is true. But these days, who knows?
I heard this last week myself from a foreclosure agent in our office. Same figures. It does seem like an awful lot of bank-owned homes! In any case, even if these are allowed to trickle-into the market, their presence will likely depress values in many markets.