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Is the threat of shadow inventory truly manageable?

By golfplan18   Follow   Thu, 3 Jan 2013, 7:37am   733 views   7 comments
In Irvine CA 92620   Watch (0)   Share   Quote   Permalink   Like (1)   Dislike  

http://ochousingnews.com/news/is-the-threat-of-shadow-inventory-truly-manageable?source=Patrick.net

With housing markets, the elephant in the room is shadow inventory. Much has been written about the subject over the last several years. It’s been portrayed as an apparition among the housing bulls, as if the millions of delinquent mortgages simply don’t exist. Most bulls comfort themselves with fanciful notions of loan modification programs succeeding and some simply denying there is a problem at all. Well, there is a problem. Lenders underwrote trillions of dollars worth of mortgages to people who couldn’t or wouldn’t pay them back. Contrary to the popular myth in the mainstream media, it isn’t a problem...

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1. robertoaribas Follow Befriend (23) 55 threads 3,810 comments Scottsdale, AZ robertoaribas's website

   1   7:46am Thu 3 Jan 2013   Share   Quote   Permalink   Like   Dislike   Well, another year, prices up higher, inventory down, time to trot out the "but shadow inventory will crush the market" meme. 5 years and running of the fantasy, but religious beliefs die hard! 1. Why are foreclosure filings down so much in trust deed states? Phoenix foreclosure filings are down over 70% from the peak... 2. why are the number of homeowners delinquent on their mortgages dropping so fast? in California and Arizona, they dropped over 20% in the past year... does that sound like a shadow monster rearing up, or going away? 3. do not confuse judicial foreclosure states, in which these factors are actually quite big, like Florida, New York, New Jersey, with trust deed states where the forclosure process is faster and easier.

2. Kevin Follow Befriend 40 threads 2,652 comments

   2   9:28am Thu 3 Jan 2013   Share   Quote   Permalink   Like (2)   Dislike   I believe the shadow inventory is in mordor.

3. dunnross Follow Befriend 28 threads 1,489 comments San Jose, CA Premium

   3   11:27am Thu 3 Jan 2013   Share   Quote   Permalink   Like (2)   Dislike   Protected   It's quite simple. This market is manipulated, and markets cannot be manipulated for too long. This simple fact has been proven over and over again. Those who deny it, will live to see the day when they are completely wiped out, financially.

4. wave9x Follow Befriend 4 threads 66 comments

   4   11:45am Thu 3 Jan 2013   Share   Quote   Permalink   Like (4)   Dislike   I have worked with banks - they are incredibly incompetent. Think "Three Stooges". For them to pull off a concerted yet secret plan to sequester away property in order to control the market is pretty close to laughable.

5. CDon Follow Befriend (1) 220 comments

   5   2:06pm Thu 3 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   dunnross says This market is manipulated, and markets cannot be manipulated for too long. Define "too long". I say that because DeBeers has been sucessfully manipulating the market for 60+ years. The US govt has been sucessfully manipulating certain commodity prices for nearly 80 years. Is this not "too long" in your book?

6. robertoaribas Follow Befriend (23) 55 threads 3,810 comments Scottsdale, AZ robertoaribas's website

   6   3:33pm Thu 3 Jan 2013   Share   Quote   Permalink   Like   Dislike   wave9x says I have worked with banks - they are incredibly incompetent. Think "Three Stooges". For them to pull off a concerted yet secret plan to sequester away property in order to control the market is pretty close to laughable. you just think it is close to laughable? I'd say beyond even laughable!

7. epitaph Follow Befriend (3) 5 threads 172 comments

   7   1:43pm Wed 9 Jan 2013   Share   Quote   Permalink   Like   Dislike   The long term implications of the current US fiscal policy are not good, the real question is how long they can keep the show going. I don't have an answer for this, but I would really like to know.