Important Facts You Must Know About Short Sale Investing And Shadow Inventory
If you are a Real Estate Agent that does short sales or an investor that does short sale investing, the Shadow Inventory will have a significant role in your business that you must know about
Some experts say that the shadow inventory doesn’t exist, or that it doesn’t pose a problem, while others insist that the shadow inventory will cause another real estate market crash.
I’m going to discuss what shadow inventory is and how it will benefit short sale investors and real estate agents that deal with short sales. Let’s cover Shadow Inventory.
1. There are millions of homeowners who are currently holding off on selling their property because they want to wait for the market prices to go up. These homeowners would otherwise sell, but because of the suppressed market are waiting. When they do sell, it will all be at once, because market indicators and the news will tell them that everything is great, and the time is “right” to sell. This will crush the housing market with inventory and take prices lower, which is just the opposite of what we want.
2. Lenders are currently holding an estimated 600,000 thousand homes in inventory that they have foreclosed on. Why? Simple, they’re waiting for the market to “turn around” so they can get more money for their REO properties! Again, when they market turns, this inventory will be added to the millions of homes from the previous list – homeowners that just want to sell.
3. There is an estimated 7 million homeowners currently in default in the US. this is massive beyond all measure, and will add to the 2 above. They will be trying to sell before losing their home to foreclosure, or simply adding to the banks’ inventory.
If you’re a real estate agent working short sales, or if you’re doing short sale investing, you are part of the solution. Without these solutions, the market will most likely get worse. Worse then we’ve ever seen it. Now is the time to learn about short sales, if you’re involved at all, you can help. It can also be very lucrative.
You can get a free ebook and the top 10 mistakes to avoid with foreclosure at our foreclosure training website. The 3 best strategies on buying foreclosed homes is also available there as a free gift.
