As reported in the Wall Street Journal:
“As of July, mortgage companies hadn’t begun the foreclosure process on 1.2 million loans that were at least 90 days past due, according to estimates prepared for The Wall Street Journal by LPS Applied Analytics, which collects and analyzes mortgage data. An additional 1.5 million seriously delinquent loans were somewhere in the foreclosure process, though the lender hadn’t yet acquired the property. The figures don’t include home-equity loans and other second mortgages
There were 217,000 loans in July where the borrower hadn’t made a payment in at least a year but the lender hadn’t begun the foreclosure process. That’s 17% of home mortgages that are at least 12 months overdue but aren’t in foreclosure, which, according to the article, is up from 8% a year earlier.”
This is causing many to speculate that a growing “shadow” inventory of pent-up supply willl eventually hit the market, with dire consequences to prices down the road.
The link to the full article -
http://online.wsj.com/article/SB125366552480532521.html
