What is Shadow Inventory?
Included in shadow inventory are Houses that are already Foreclosed on and owned by banks also known as REOS, homes in the foreclosure process and includes those homes where the owner is delinquent on their mortgage by at least 90 days.
Shadow Inventory can be found in all states and does impact your market. Banks are holding this inventory so they can show a healthy balance sheet because dumping too many distressed properties onto the market will drag down home prices and value.
Shadow inventory will impact almost every part of the country. It can come in the form of Single Family Homes, Townhomes and Condos. Contact a local Real Estate Agent and find out how it may impact your investment and when you should consider listing your property to avoid the worst effect of shadow inventory.