Real Homes of Genius: When a $127,000 Down Payment Evaporates in Santa Monica. Living the good life for 3 Years Courtesy of Easy Debt in the Westside.
Some people when thinking of shadow inventory have images of poor rundown homes in suspect neighborhoods. Yet the reality of shadow inventory sometimes include some of the most priciest and beautiful real estate in the world. Take for example the Wells Fargo executive who was using an exclusive Malibu foreclosure for private parties. The initial owners in Malibu invested some of their money with Bernard Madoff only to have their home taken over by Wells Fargo. Talk about trading one positive partner for another.
In recent days many articles have come out talking about shadow inventory and have silenced the tiny crowd that somehow believed that it was somehow a myth. It was fun for them to believe but that argument is now over. In fact, the shadow inventory amount is larger than one would have imagined:
“Sept. 23 (Bloomberg) — The crash in U.S. home prices will probably resume because about 7 million properties that are likely to be seized by lenders have yet to hit the market, Amherst Securities Group LP analysts said.
The “huge shadow inventory,” reflecting mortgages already being foreclosed upon or now delinquent and likely to be, compares with 1.27 million in 2005, the analysts led by Laurie Goodman wrote today in a report. Assuming no other homes are on the market, it would take 1.35 years to sell the properties based on the current pace of existing-home sales, they said.”
http://www.doctorhousingbubble.com/real-homes-of-genius-when-a-127000-down-payment-evaporates-in-santa-monica-living-the-good-life-for-3-years-courtesy-of-easy-debt-in-the-westside/
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