West Sacramento Short Sale Information – What is Shadow Inventory?

West Sacramento Short Sale Agent, Default Advocate, Distressed Property Expert and West Sacramento Short Sale Specialist Mike Rigley here bringing you the latest West Sacramento Short Sale Information. Thank you for joining us.

What is Shadow Inventory? You hear on the news all the time about the Shadow Inventory of foreclosed or distressed homes that loom out there threatening to de-rail the housing market but what exactly is Shadow Inventory and why should you be concerned?

Shadow inventory is defined as those properties that are in some stage of foreclosure or even possibly bank owned that are not currently on the market for sale and as importantly those loans that are seriously delinquent but not in foreclosure. Now, keep in mind this does not take into account those who are upside down in their mortgage who may choose to walk away or short sale rather than wait for the market to come back. With 25% of all homeowners in West Sacramento County owing more than their home is worth that’s a whole other concern.

So how big is the Shadow Inventory number? In West Sacramento County on average 1500 -1600 homes are sold each month. As of June 23, there are over 2600 homes that are in either in foreclosure or ready to be sold at auction within the next 21 days. That’s a two month supply of homes. With the current shortage of homes for sale, dropping this two month supply on the market might not be catastrophic but it will certainly stop the rapid price appreciation we’ve had over the last few months.

But that’s not the number that concerns me so much. No the bigger number that is included in the Shadow Inventory is the number of homeowners that are seriously delinquent, meaning more than 90 days delinquent. By most reports, for the greater West Sacramento area that number is right around 22,000. That represents about an 18 month supply of homes and how those properties are liquidated either through Short Sale, foreclosure or the Hail Mary Loan Mod will determine how long this housing crisis will last and if we are near the end or headed for a prolonged recovery.

If you are considering selling now is the time to act. You may get slightly more if you wait but is at any time that inventory starts to come on the market you could get less. Owe more than your home is worth? Short Sale might be the answer.

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did.