At least they finally have a number on the “Shadow Inventory”. 700k homes owned by banks but not on a MLS. Remember when we use to debate about the existance of a shadow inventory in an meaningful way?
This article is also quoteing that as of December 2008 12% of all morgages were atleast 1 month late. Now here in March we have had a crumbling job market and 650k plus new filings for unemployment every week. I just dont see how this wont keep going for a long time if people cant get work. I wonder if we have already hit 15% for March 09.
On a side note, Obama’s plan is to refi a house up to 31% of a borrowers income. If the borrower is a two income household, and one income is lost, will the house be refied to 31% of only that one income? That could be a huge swing in payments!
