It seems especially fitting that this topic be covered today, on Halloween. [the scariest day of the year]. For the information presented about the percentage of homeowners with negative equity by state is in every respect scary. Another way to look at the home equity situation at the current time would be to peel the
What this means is that nearly 3 of 10 homeowners have nothing in equity and/or are underwater on their home. This also means that any sale [if needed or forced to] of their home essentially wipes them out. <img class="alignright size-full wp-image-1135" title="house14" src="http://ucfunding.com/blog/wp-content/uploads/2011/08/house14.jpg" alt="house14" width="662" height="352" />
<img class="alignright size-full wp-image-1128" title="house13" src="http://ucfunding.com/blog/wp-content/uploads/2011/08/house13.jpg" alt="house13" />The chart above documents what we hear a lot about; namely that about 1/3 of all current real estate sales are either a short sale or REO sale. Given the elevated levels of REO yet to be sold, and additional shadow inventory not yet even on the market,
What is equally shocking is that there is nearly a unanimous agreement among real estate, lending and academic observers that this pile of shadow inventory will take at least several more years before total absorption can occur. Given the long timelines in processing and completing foreclosures currently being experienced, this is probably an optimistic time
<img class="alignright size-full wp-image-1116" title="house11" src="http://ucfunding.com/blog/wp-content/uploads/2011/08/house11.jpg" alt="house11" />Total inventory for these 3 groups currently is about 250,000 units, with Fannie accounting for over 50% of the total. What is nearly impossible to believe is that total levels of REO were only about 75,000 units less than 4 years ago. This shows the magnitude of the
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