[quote=jpinpb]I am not following entirely what Hanson is saying lately, but he predicted a tsunami of NODs and they did happen. They’re just not hitting the market as a tsunami. This is, of course, thanks to government intervention. Had that not occurred, I think we would be flooded w/REOs.[/quote]
Absolutely agree.
If the “shadow inventory” didn’t exist, there would be no reason for all the govt intervention (foreclosure moratoriums, HAMP program, ramped-up GSE and FHA programs, Fed buying Treasuries and mortgages, etc., etc.), right?
IMHO, it’s a fallacy to say the “shadow inventory” doesn’t exist. It DOES, in fact, exist. They are just trying mightily to hide it and prolong the correction.
For clarification: I include all houses that would be foreclosed on if not for external intervention, in addition to those that are already foreclosed but not on the market. It’s just a different stage of the same problem.
