I think this is largely a semantic argument, but the shadow inventory data includes 90+ day lates and properties in the process of foreclosure, not just the end-game foreclosure evictions. I’ve heard thru friends of homes in their neighborhoods that people have walked away from, sitting vacant, that banks are nonetheless not foreclosing on. Hence the reason Fannie had to recently say “hey you guys need to foreclose on these”.
Personally, I know of 2 properties in Scripps Ranch (where I live) that are currently vacant but not listed for sale. They are easy to pick out because the yards are overgrown in an otherwise spotless neighborhood. Another one was just sold as an REO after being trashed by squatters who were living there for a year+ with the water off… you can imagine the scene inside. Heard it was “not pretty”. BTW the home sold for ~$900k.
• Over 4.3 million loans are 90 days or more delinquent or in foreclosure
• The average number of days delinquent for loans in foreclosure is a record 492 days
• Nearly 20% of loans that have been delinquent more than two years are still not in foreclosure
