Mar 01
The overhang of homes heading toward liquidation suggests more delinquencies and lower home prices are to come. The current “shadow inventory” including all delinquent loans, not only those that are real estate owned [REO] of troubled mortgages will likely take about 33 months-or nearly three years-to clear at the current rate of liquidations. Moreover, we believe this estimate is conservative, as we do not assume any loans that have yet to show any serious signs of distress to date will default in the future and further increase the overhang of homes.
via Standard & Poors.
