OK. FWIW, my friend (married couple) bought at peak (in Linda Vista). They decided to do a short sale and get out from under their depreciating overpriced condo. The short sale was successful after five months and sold for way less than peak (45% off and below 2001 price). Note: They did not make a payment for about 8 to 10 months. They did not get a NOD during that time.
Was this considered shadow/stealth inventory?
Are we deeming shadow/stealth inventory only properties w/NODs? I’ve seen places listed as short sales w/NODs and some short sales that didn’t have NODs yet. I’ve seen places w/NODs and foreclosure dates that still have not listed and some that eventually get bank owned and list.
Seems we don’t have a real definition for stealth/shadow inventory. To me, if it’s distressed and ends up eventually somehow to market, the end result has been a lower comp from peak for the most part. In the end, that ultimately reflects the outcome of this bubble.
