For those unfamiliar with term- these are homes whose borrowers that defaulted on their mortgages and returned the property to the bank. It is the duty of the bank to place the home back on the market and get it sold. RealtyTrac.com maintains an extensive database of information on foreclosures. Here is some data from the Miami area that will make you realize just how much shadow inventory is out there. As of July 16, there are 10,858 repossessed properties. Of that number, over 2,100 have been on the banks books for more than a year without being placed on the market. Out of the total 10,858 homes, only 983 were currently listed for sale. For high properties, the numbers are worse as only 11 of the 1,400 properties worth $300,000 or more were listed for sale. All in all, these are some numbers that mean the glut of inventory is far from over.
