RealtyTrac and other respected bean counters in the real estate market are trying to get the word out about a new problem in the housing market - Shadow Inventory.
Shadow Inventory are homes which have been foreclosed by the bank, are technically now on the books of the banks, but have not been listed yet in a MLS for sale.
Evidence points to unlisted inventory as high as 66% of the properties the banks have taken back!!!!
On a slightly better note - additional evidence suggests that most of the subprime paper has been dealt with - properties have been foreclosed, sold or changed hands in one way or another. However, a whole new wave of problems is starting - a bigger problem yet - of alt-a and prime paper defaults. These are by and large bigger loans and nicer properties. In an era of plummeting demand, this points to even greater losses for the banks. Ouch!
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