Bookmark this site
After the last entry on foreclosure activity, a couple of readers sent in articles with more data relevant to the topic of “shadow inventory.”
A commenter at my own site linked to a May Union-Tribune article about mortgage delinquencies. Delinquencies are defined as mortgages on which payments are late by a certain number of days (60 in this case). The reason this figure is interesting is that it captures all currently troubled mortgages, not just those that have been served with Notices of Default. So delinquencies are a more inclusive measure of potential shadow inventory.
According to the Union-Tribune article, at least 9.4 percent of San Diego mortgages were delinquent as of the first quarter. I say “at least” because two different outfits estimated delinquencies, and 9.4 percent was the low number. The higher number was 11.9 percent.
That’s 9.4 percent (or 11.9 percent) of all San Diego mortgages. That makes for a very large number of people who aren’t making payments on their home loans — and a very large question about how many of the homes involved will eventually hit the market as must-sell inventory.
Read morfe from the Voice of San Diego
