More Short Sales and The Elusive Shadow Inventory

[Ted Akers]

What do You Think?

The Wall Street Journal is reporting that studies by Standard and Poors and John Burns Real Estate Consulting conclude that 70% of loan modifications done will delay but not prevent foreclosures. The Burns study predicts up to 5 million homes will go through foreclosure in the next few years and expects “Shadow Inventory†of about ten months supply to hit the market. It is not specific of the timeline but implies inventory will hit the market fairly soon. The article concludes with “As a result, servicers increasingly are looking to arrange short sales, in which homes are sold for less than their loan balancesâ€.

A full copy of the article can be found at:
http://online.wsj.com/article/SB10001424052748703562404575067452797224606.html?KEYWORDS=foreclosure :D