According to USA Today, there were about 1.7 million homeowners who were far along in the foreclosure process in the fall – which means that there is a large bulge of homes that are going through the foreclosure process and will be available for sale from the banks in the spring and into 2010.
A year ago, there were 1.1 million – which means that that the number has risen substantially and many experts predict the number will rise through at least the middle of 2010.
According to Mark Fleming – the Chief Economist at First American / CoreLogic the foreclosure backlog is equal to about half half of the 3.8 million unsold new and existing homes currently on the market.
“We’re going to be dealing with high levels of distressed (sales) in the marketplace for at least a couple of years,” Fleming said. “It’s not just all going to disappear.”
The estimate from First American is fairly conservative – other reports estimate a higher number – but they have chosen to make some fairly conservative assumptions in their algorithms.
Regardless of exactly how big the number is exactly of the “shadow inventory” one thing is clear – there are still many more homes that are in the foreclosure process and with loan modifications not being as successful as many people hoped – homeowners are left with a difficult choice: go through the short sale process or the foreclosure process.
And in 2010 it is pretty clear that a large portion will end up in foreclosure which will only add to the shadow inventory of homes across the nation.
One Response to “Large Backlog Of Bank Owned Homes”
I think that entire Obama Home Affordibility Act is a joke. My mom and I have been trying for a modification for over a year due to a severe injury and loss of employment and our lenders American Servicing Company with Wells Fargo Home Mortgage is useless. I can defintely see where homeowners are left with the no choice but to foreclosure because that short sale is a joke to as homes are sitting there people can hardly rent them let alone sell them, these big shots need to wake up and take a look around. Lenders should be willing to get a little bit more creative with homeowners and not so greedy and help the homeowners with in some what reality its better getting something then having houses sitting out there for a year with no occupancy and getting vandalized. Thank You
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