Shadow Inventory Revisited: Southern California REO, and the Great Public Swindle

I dug deep into the shadow inventory data again and it is simply growing. But in a variety of ways. First, many banks are simply not moving on homes. That is, you can stop making your payments and depending on which incompetent bank you may have, you probably have a fifty-fifty chance that you will have no notice of default for 6 to 9 months. The foreclosure process now takes 18 months to 2 years. And for those properties that are taken back, some banks are going with rent to own options. Or in other properties, banks are merely using them for Romanesque blowout parties. But the most common option is doing absolutely nothing. First, let us show you how absurd things are getting in Southern California...

Dr. Housing Bubble: Shadow Inventory Revisited: Southern California REO, and the Great Public Swindle