What is Shadow Inventory?

Hello Hampton Roads,

Have you heard of the term "Shadow Inventory" and wondered what it meant?

Shadow Inventory consists of the following:

• Homes 90 days delinquent on the mortgage--97% of people who are 90 days delinquent on their mortgage end up selling their home in some sort of distressed property sale (either a foreclosure or short sale)
• Houses already owned by banks but not yet on the market
• Houses already in the foreclosure process but not yet foreclosed

Below is a picture showing month's supply of inventory by state--this data is taken from the latest NAR (National Association of Realtors) from Nov 2011.

Virginia is shown to have a 14 month supply.  Expect to see more of this shadow inventory released this year and in 2013 as a result of the national mortgage settlement which gives guidelines on how banks are to proceed with foreclosure.

Thanks for Reading,



_________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs.