Shadow Inventory includes all delinquent loans, not just those that are currently REOs.
According to an article written by S&P (Standard andPoor's) on February 16, 2010, a conservative estimated time to reduce this inventory may take almost 3 years at the current rate of liquidation. Cited reasons for this are weak economic environment, distressed residential home values, and the resulting contraction in the supply of mortgage finance.
Up until now the inventory liquidation has been constricted for a variety of reasons leading to increasing levels of Shadow Inventory. A shift in loan servicer's strategies to expedite the reduction of their troubles assets may lead to a higher level of distressed homes for sale in the future, says the article.
Although the potential exists for short term negative impact on prices, recent data provides some hope for recovery of the housing market. The number delinquent loans seen each month seems to have peaked.
The silver lining in these predictions may be found in the impacted markets. While Arizona, Nevada, Califorinia and other states have seen higher rates of foreclosures, the Colorado Springs Real Estate Market has been less effected. Real Estate is still very much localized. Although Colorado Springs is not exempt from national trends, it has certainly not seen the high levels of foreclosures that other areas have witnessed. If levels of distressed properties rise, the Colorado Springs housing market should be much more insulated that other areas across the country.
Oninion article by William Szilagyi,Williams HomeSellers LLC,www.ZColorado.com,www.WilliamsHomeSellers.com,Resource: S&P Article: "The Shadow Inventory Of Troubled Mortgages Could Undo U.S. Housing Price Gains" Publication date: 16-Feb-2010 10:48:43 EST,colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs,Monument Real Estate,Palmer Lake Real Estate,Briargate Real Estate,Stetson Hills Real Estate,Fountain Real Estate,Air Force Academy,Colorado Springs Horse Property,Manitou Springs Real Estate,Colorado D20 Schools,Woodmoor Real Estate,Jackson Creek Real Estate
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