Lenders Might Be Getting Rid of Foreclosure Backlog
There might be some hope for this real estate market after all, but it may not come soon. Foreclosure filings (for homes in some stage of the process) declined in May by 3% from April 2010 according to Realty Trac as reported by the Los Angeles Times. California accounts for 22% of these foreclosure filings from all over the country.
The article also reported that the pace of homes exiting foreclosure and being seized by banks hit a record high in May for the second consecutive month, which leads us to believe that the banks might be working through their backlog on the market and ready to put some more foreclosed homes on the market very soon. Anecdotally, many people have noticed that banks will either hold on to inventory after foreclosing or will delay foreclosure so as to avoid flooding the real estate market with inventory. We might begin to see some of that “shadow inventory” that has been referred to so often.
You may read the entire article here.
