Dan, I didn’t write the article, so the above questions should be directed to Diana Olick. I think TG has her number.
But my take on them is:
1. Many of the short sales will presumably those in the process of foreclosure (ie with nod’s on them). Anyway, it’s nitpicking on terminology and beside the point. The point is that she is alleging that some of the oft-discussed “shadow inventory” could finally start hitting the market, whatever label you want to use.
2. Clearing out that inventory will surely make for a healthier market eventually, but between here and there increased inventory (especially must-sell inventory) would likely put downward pressure on prices — or at least reduce upward pressure on prices. So I’d certainly agree that it’s bearish in the near term.
