It will take nearly four years to clear the shadow inventory of foreclosed (or nearly foreclosed) homes given the number that are delinquent, recently caught up, or bank-owned. This can not be good news for a full housing recovery, but at least it’s a start. From DS News.com,
To put the shadows into perspective, S&P says this latest number, which is based on the original balances of the loans, represents slightly less than one-third of the outstanding non-agency residential mortgage-backed securities (RMBS) market in the United States.
The New York City metropolitan statistical area (MSA) has the highest months-to-clear in the nation, at 202 months.
The good news is the rate in which shadow inventory is occurring has slowed.
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