{"id":11158,"date":"2010-02-04T09:00:05","date_gmt":"2010-02-04T16:00:05","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11158"},"modified":"2010-02-03T23:28:25","modified_gmt":"2010-02-04T06:28:25","slug":"a-scary-thought-on-the-non-existent-shadow-inventory","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11158\/a-scary-thought-on-the-non-existent-shadow-inventory\/","title":{"rendered":"A Scary Thought on the (Non-Existent?) Shadow Inventory"},"content":{"rendered":"

The shadow inventory has been a topic of interest with almost every agent I talk to lately.\u00a0 Most believe it is large and few understand why it isn’t in the marketplace rather than held by the banks.\u00a0 Russell Shaw recently wrote about the shadow inventory being gibberish<\/a>.\u00a0\u00a0 It is an interesting article and one I recommend reading.<\/p>\n

I rarely disagree with Mr. Shaw, and rather than do so now I’ll simply suggest that we are talking past one another.\u00a0 As I read it, he is suggesting that this inventory doesn’t exist because it is, for the most part, out there already; just not listed as REO.\u00a0 He makes it quite clear, however, that he is not talking about foreclosures still to come. (Apologies to Russell for over-simplifying.)\u00a0 This is where we begin to part ways.\u00a0 I submit that the shadow inventory must necessarily include not only actual REOs (or REOs not listed as REOs), but the entire picture.<\/p>\n

More to the point, if we look at all the homes that have been foreclosed on, are in foreclosure and should<\/em> be in foreclosure, we are left scratching our heads and find ourselves back to the same question: why aren’t the banks taking these homes in, putting them on the market, and selling them? \u00a0 (I’m talking here especially about those homes where people have stopped making their payments and continue to live for 6, 12, even more months.)<\/p>\n

MORTGAGES IN DEFAULT<\/strong>
\nHere’s a graph courtesy of the New York Times<\/a>:<\/p>\n

\"\"<\/a>

Sources: Federal Reserve Board and Mortgage Bankers Association, via Haver Analytics<\/p><\/div>\n

That is an awful lot of mortgages in foreclosure; but add<\/em> to that that lower line – of mortgages in default and not yet in foreclosure – and the numbers are staggering (again, think of people staying on a year after they’ve stopped making payments).\u00a0 So no matter what we call it, the question remains: What are the banks doing? Why aren’t these mortgages foreclosed?\u00a0 Why isn’t this inventory on the market?<\/p>\n

I know all real estate is local and there are plenty of areas around this country where the last thing agents want Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The shadow inventory has been a topic of interest with almost every agent I talk to lately.\u00a0 Most believe it is large and few understand why it isn’t in the marketplace rather than held by the banks.\u00a0 Russell Shaw recently wrote about the shadow inventory being gibberish.\u00a0\u00a0 It is an interesting article and one I […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251,26,5],"tags":[461],"class_list":{"0":"post-11158","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"category-lending","8":"category-real-estate","9":"tag-shadow-inventory","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10986,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10986\/shimmers-of-the-shadow-is-your-local-reo-inventory-going-up\/","url_meta":{"origin":11158,"position":0},"title":"Shimmers of the shadow: Is your local REO inventory going up?","author":"Greg Swann","date":"January 26, 2010","format":false,"excerpt":"Strictly anecdotal -- and I would be delighted to be wrong about this. First, the inventory of the homes I track for investors has been rising slowly but steadily since mid-October. Not an obscene increase, but sales are way up as prices have wallowed in more or less the same\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2641,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2641\/bloodhound-blog-remains-open-what-would-beth-ask\/","url_meta":{"origin":11158,"position":1},"title":"Bloodhound Blog Remains Open. What Would Beth Ask?","author":"Brian Brady","date":"February 23, 2008","format":false,"excerpt":"Bombastic blogger, Kevin Tomlinson, knows how to rile up the crowds. Most of you met Kevin through the Project Blogger competition, hosted by Activerain.com. Kevin never disappoints. He made the dramatic statement that he believed... Bloodhound Blog would be shut down by Friday. Kevin's not mean, he just likes a\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1286,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1286\/russell-shaw-at-the-starpower-summit-what-the-hell-are-you-thinking\/","url_meta":{"origin":11158,"position":2},"title":"Russell Shaw at the StarPower Summit: “What the hell are you thinking?”","author":"Greg Swann","date":"April 10, 2007","format":false,"excerpt":"As promised, appended below is an audio podcast of Russell Shaw's performance two weeks ago at the StarPower Summit in Phoenix. Russell is talking about pricing homes in a buyer's market, and it might be worthwhile to share this podcast with your listing clients to help them understand the marketplace.\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10037,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10037\/capture-appreciation-and-cash-flow\/","url_meta":{"origin":11158,"position":3},"title":"Capture Appreciation and Cash Flow","author":"Cooksquared","date":"October 12, 2009","format":false,"excerpt":"The advantage of investing in today\u2019s market is the potential to capture appreciating assets that provide strong cash flow. These investments are the holy grail of real estate investing. In strong markets, these properties simply don\u2019t exist, but in down markets, a smart investor can pick out these diamonds among\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11194,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11194\/cant-find-a-nut-search-in-a-nut-house\/","url_meta":{"origin":11158,"position":4},"title":"Can’t Find A Nut? Search In A Nut House","author":"Brian Brady","date":"February 6, 2010","format":false,"excerpt":"Mortgage squirrels, searching for some nuts, during what I believe could be a long winter, might consider this idea: There should be a lot of listings hitting the market when the shadow inventory eventually gets released.\u00a0 Banks are not very attentive sellers inasmuch as they care less about condition and\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":946,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/946\/podcast-with-russell-shaw-part-one-be-cause-over-it-rather-than-effect-of-it\/","url_meta":{"origin":11158,"position":5},"title":"Podcast with Russell Shaw, Part One: “Be cause over it rather than effect of it”","author":"Greg Swann","date":"January 25, 2007","format":false,"excerpt":"This is the first of three podcasts we have made with mega-producing Realtor and BloodhoundBlog contributor Russell Shaw. Cathleen and I talked with Russell for around four hours, recording about two hours and forty minutes of that conversation. This particular segment starts with a discussion of Russell's real estate career\u2026","rel":"","context":"In "Enduring Interest"","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11158"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11158\/revisions"}],"predecessor-version":[{"id":11165,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11158\/revisions\/11165"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}