The Real Deal Miami

Delayed foreclosures could form dangerous shadow supply

September 23, 2009 09:07AM

As many hope that the foreclosure crisis has slowed, the Wall Street Journal’s Ruth Simon said that a shadow inventory of soon-to-be-foreclosed homes could be emerging. This shadow supply is comprised of homes that haven’t yet been foreclosed, but are owned by seriously delinquent mortgage holders. “The fear is that many of these homes will become foreclosures,” Simon said, “and they’ll come to market just as the housing market is showing signs of recovery, and that could hurt home prices.”