I guess that’s why they refer to it as the “shadow” inventory huh? Its not out there in the open for all to see easily.
Go to RealtyTrac (RT)and use the free search function. Do you see a ton of REOs, many, many more than are listed on the MLS? There is part of the shadow inventory. The other part is harder to find.
I have seen a property pop up on RT when a NOD was filed and then strangely drop off when the actuall papers were served (I saw them taped to the door). That was two months ago and its still AWOL from RT. One REO I was interested in was on RT for a year, then it went to a Williams and Williams auction, fell off RT, did not sell, is still empty a year later and is still not on RT.
Three homes in my area (same owner) have been in trouble for two years and only briefly showed on RT. I could go on.
Probably the whole point of the shadow inv. is to keep RE prices artificially elevated by hiding the magnitude of the REO problem from potential victims…errrr ah, buyers that is. Judging from the number of bottom callers I guess its doing that to some extent.
