Shadow inventory in the United States is currently estimated at over 7,500,000 homes and growing.

Consider the following:

• Banks currently own over 800,000 REO’s (foreclosures) that they have not yet put on the market, and are simply sitting on.  They cannot yet afford to take the losses on these homes, so they are letting them sit vacant, accumulating fines, property taxes, back HOA dues etc.
• There are 6,500,000 mortgages currently in default in the United States.
• What is the cure rate of these mortgages (the likelihood that they will be brought current as opposed to going to foreclosure or short sale)?
• 30 days late: 29% Cure Rate (in other words, 71% will go to foreclosure or short sale)
• 60 days late: 5% Cure Rate
• 90 days late: 0% Cure Rate

While these are national numbers, these default properties are heavily concentrated in the hardest hit states of Florida, Nevada, Arizona and California.