Inventory of Foreclosure Homes Beginning to Decline

It's called shadow inventory and is a collection of properties in 90-day delinquency or worse, foreclosure and REO. And according to S&P (Standard & Poor's) the amount of time it would take for the housing market to move through properties lingering in the foreclosure system is improving, it is decreasing. Their analysts estimate it would take 47 months for the housing market to dispose this shadow inventory, according to their second quarter research. This is a decrease of 5 months from 52 months reported in the first quarter. This is notworthy because this is the first such decline in a few years.

In the later half of 2010 S&P was reporting increases to the length of time for disposal. At the end of that year they said that the housing market would need 44 months to sell off the inventory, which was up from the previous quarter's 40 months that was report at the end of September of 2010. S&P developed their information from analysing data from CoreLogic, the estimates were calculated from these analysises. I happen to do contract work for Corelogic with property valuations, so I see by the maount of work that gets offered to me that their analysis is pretty accurate. I also market HUD owned homes and I am finding that the current inventory that HUD is offering in the areas that I market in are becoming extemely limited. You can view the current list of homes that are left at http://www.njhudsales.com and/or subscribe to my notification list.

However, the unpaid principal balance on these properties remains high at $405 billion, but it is a 6.4% drop from the previous quarter and represents less than one-third of the outstanding private-label mortgage-backed securities market. The analysts stated, "In conjunction with stable liquidation rates, we believe these are positive signs that the amount of time it will take to clear this 'shadow inventory' should continue to decline over the next year." S&P analysts said even as the market is finally making gains on the overhang, servicers are still working through documentation problems, new regulations and tighter scrutiny. RealtyTrac recently estimated the delays kicked more than 1 million foreclosures to next year.

From a home buyer and real estate investor prespective the window of opportunity is beginning to close, albeit slowly, but it is closing. The affect of these reductions will mean that bargain prices of these homes will begin to disappear. NOw is the time for serious buyers, looking for some great bargains to start looking at what properties are available. As a real estate consultant and marketer, my business's mission is to help my clients solve their real needs. So, don't let an opportunity pass you by and check out what foreclosed homes are still on the market or send me detailed information on what you are looking for and I will try to locate properties for you..