Real estate industry fears flood of ‘shadow inventory’
While the inventory of for-sale homes has been falling, there is widespread worry that a hidden reservoir of homes – or a “shadow inventory” – could flood the market and harm the struggling effort for recovery, reported the Charleson, S.C., Post and Courier.
The shadow inventory includes foreclosures that banks haven’t put up for sale yet, houses that are more than 90 days behind on their mortgage, or owners who are waiting to put their houses up for sale. There is no way of knowing whether this inventory will inch onto the market, or hit the market in a rush.
Foreclosure prevention funds go essentially unused
Less than $218 million of the $7.6 billion federal program to help unemployed homeowners prevent foreclosure had been paid out as of Jan. 1, reported the Los Angeles Times in this piece picked up by the Boston Herald. The Hardest Hit program was funded by the U.S. Treasury Department with money left from the Troubled Asset Relief Program. States have set aside 70% of the money to keep unemployed homeowners up to date on their mortgage payments or help borrowers catch up on missed ones.
Source: HousingWire E-News Update