[quote=pizzaman]
I am having trouble understanding where all the inventory is. Right now in zip 92562 its off over 50% from where it was last year. I understand the concept of shadow inventory but from a practical stand point , at least in the area I track in west Murrieta , I am not seeing houses go back to the bank and then not get listed. The ones I do know of that appear to be shadow inventory all seem to have a story to go with them. For example I have been in touch with one bank about a house that has been on their books for 16 months and it still is not for sale. This would appear to be shadow inventory but in reality they would like nothing more than to sell it. The problem is that as unlikely as this sounds they have been working all this time to evict the former owner who has thrown one legal maneuver after another at them. They have literally been in court for the last year plus. At any rate my plan will fail miserably if the inventory doesn’t start picking up.
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I think that a good part of this so called fathom or shadow inventory is at least in the process of attempting loan modification, whether this will work or not is up for debate at this point but this should make for an interesting dynamic none the less.
