Mortgage Daily Logo
mortgage news from industry experts

Another Improvement In Shadow Inventory

After improving for the first time in two years, the supply of distressed properties fell again.

In the second quarter, the supply of distressed residential properties fell to 47 months. It was the first time since mid-2009 that the number of months was lower.

In the third quarter, the supply fell to 45 months, Standard & Poor’s Ratings Service reported Tuesday.

That worked out to $384 billion in non-agency residential loans. Three months earlier, the inventory was $405 billion.

“While this number declined for the second straight quarter, it only marks a two-month improvement since the second quarter of 2011 and is still three months longer than our estimate a year ago,” the New York-based ratings firm said.

S&P Managing Director of Global Surveillance Analytics Diane Westerback noted in the announcement that the latest data suggests that the amount of time needed to clear the shadow inventory will continue to decline over the next year “assuming national liquidation rates do not decline abruptly.”

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION