Not much is out there about the shadow inventory the lenders are sitting on, but I have a bit of an inside track.
As a
real estate broker, I have been called on for BPO work for many properties that are not yet on the market. As a
property manager I have been called on to assist lenders with the management of hundreds of assets they have not yet released to the sale market.
So how deep does the shadow run, only the shadow knows, but I know of hundreds or properties that are REO, but because the real estate market is what it is, the lenders are sitting on them, hoping against hope that the market will improve so they can dump them.
The stress test is the latest government ploy to force lenders to expose these toxic assets to the markets. If they succeed, this will result in a massive depreciation of certain markets, largely affecting urban areas of the US.
Many of these toxic assets were investment properties held by real estate investors and lost because the flipping schemes of the 90's and early 2000's failed when the sub-prime markets faltered.
Get ready America, the tide of foreclosures has just begun!
Kansas City Investment Property
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=cc5b6ece-ae59-4287-9feb-fd7d5ca20ec5)