Shadow May Be Lifting

CNNMoney reports that the shadow inventory of houses - the inventory of houses that are not on the market but that are in default and may be foreclosed upon - may be lifting sooner than anticipated.  This inventory puts a strain on the already tepid housing market.  Standard & Poor's estimated earlier this year that it would be 52 months before that inventory was exhausted.  S& P has now revised that timeline to 47 months.

S&P said the decline was helped by stabilizing liquidation rates and by fewer borrowers falling behind on their mortgage payments as the economy slowly recovered during the quarter. The firm also said tightened lending standards over the past several years has helped reduce the likeliehood of defaults among recent homebuyers.

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