[quote=zk]
I’d be interested to hear other theories that might explain the lack of inventory.[/quote]

Based on DataQuick data:

County NOD’s
2009Q2: 9,866 2011Q4: 4,813 2012Q4: 2,655

foreclosures
2009Q2: 3,518 2011Q4: 2,044 2012Q4: 1,285

Different source, similar drop in NOD’s, trustee sales (from 1,600+/month in 2008 to <400/month in 2013)

http://www.foreclosureforum.com/stats.html