If the lenders are truely “swamped” and that’s the main reason that REO’s are not getting listed quickly, then maybe a more accurate way to calculate the “shadow inventory” that’s out there is to take Mr. Mortgage’s guess that roughly 80% of all NOD’s will not get cured and thus end up as REO’s…given that these properties are probably upside down and wont sell on the court house steps. I guess many could also go into a short sale during the foreclosure process as well, but he may be including that as being “cured”.
If NOD’s must be recorded, at least it’s a starting point with some measure of accuracy. But, I guess the lender could also delay sending out an NOD as well.
