Shadow Inventory to Take 3 Years to Clear: Standard & Poor's

"The shadow inventory of distressed properties that back residential mortgage-backed securities will take nearly three years to clear at the current sales rate, according to the credit rating agency, Standard & Poor’s (S&P).
The shadow inventory is the amount of homes with delinquent mortgages yet to move through the foreclosure process. S&P narrows the definition down to the amount of outstanding properties 90 days or more delinquent, in foreclosure, or in REO status but not yet on the market.
S&P puts the total principal balance of the shadow inventory at $480bn or 30% of the entire non-agency market.
“Given this backlog, we believe that average home prices could fall again if demand doesn’t rise in step with the potential influx of supply,” said Diane Westerback, S&P credit analyst."

at http://www.housingwire.com/2010/06/15/shadow-inventory-to-take-3-years-to-clear-sp?utm_source=rss&utm_medium=rss&utm_campaign=shadow-inventory-to-take-3-years-to-clear-sp