I think that’s the first anyone in the thread has mentioned this issue. I too wonder how much “shadow inventory” the banks still have, either because they don’t want to have to recognize the loss, or because the paperwork is so fouled up they haven’t been able to foreclose.
I have a house close to mine that I’m 99% sure is in this situation. It should have been foreclosed upon years ago.
” I too wonder how much “shadow inventory” the banks still have, either because they don’t want to have to recognize the loss, or because the paperwork is so fouled up they haven’t been able to foreclose.”
They have plenty, especially in northern ans southern California. There are many people living in 2-5 million dollar homes who haven’t made a mortgage payment for 2 or more years.
An entire industy has sprung up that teaches homeowners how to stay in their homes. Usually, a lawyer files paperwork with the(alleged) lender of record, requestiong 50-100 pieces of paperwork(paper chase). They demand proof that the mortgage bank is the REAL owner. This can take a year or more. Meanwhile, the home owner pays no mortgage or rent.