Sam Gendusa September 3, 2013

During the market downturn in 2008 and 2009, only 15 to 20 percent of foreclosed homes made it to the market, according to the National Association of Realtors. That left up to 85 percent of the market foreclosed and bought by banks, creating the real estate epidemic known as “shadow inventory.” Shadow inventory causes real estate data to understate the actual statistics of a market’s housing inventory.

In recent months, 1.7 million homeowners have missed at least one payment of a government-backed mortgage, according to the Federal Housing Finance Agency and Department of Housing and Urban Development. Once these mortgages pass 90 days of delinquency, they will be added to the nation’s shadow inventory, posing challenges to mortgage holders Freddie Mac, Fannie Mae, and others.

Shadow inventory, made up of mostly serious delinquent homes, has been a hard number to track and project. Shadow inventory poses a serious threat to many local markets, especially counties in the Northeast. Here are a few statistics of New York counties compiled by the Department of Financial Services from February 2010 to March 2013, recording 90-day pre-foreclosure notices:

  • Bronx totaled 36,406
  • Kings totaled 83,266
  • Nassau totaled 107,324
  • New York totaled 21,976
  • Queens totaled 110,400
  • Richmond totaled 35,681
  • Suffolk totaled 156,285
  • Totaling 551,338 pre-foreclosure notices sent to seven New York counties between February 2010 and March 2013.

Consider this, on June 27, 2013 there were 114 foreclosed properties for sale in Queens, a borough with roughly 2.2 million residents. There were 2,249 foreclosures for sale on the same day in Chicago. Looking at this data, there were 100,000 pre-foreclosure notices dispatched and only just about a hundred for sale on any given day in Queens. There are definitely an overwhelming number of delinquent properties out there, skewing the statistics and putting a delay in recovery.

With the number of homeowners dealing with foreclosures and short sales, its important for mortgage professionals to be prepared. When homeowners need answers and clarification on their situation, they need accurate and fast results! Blue Streak Docs is a document retrieval company, equipped with an expert staff experienced in property searches, deed searches, and document recording. Let us handle the details of your property search, so you can assist your clients and help them make important decisions. For more information about our services and how our staff can help your company, give us a call today at 727-479-0007.

Try us out with 5 orders and your 5th order is FREE!