valentinosdcpulse: Out of the Shadows: Hidden Inventory Hits the Market

America is watching as huge numbers of properties are entering the foreclosure system but far fewer are leaving. What has resulted is a huge backlog of unsold homes and other distressed properties owned and being held by financial institutions. It is these properties held in limbo that are called the "Shadow Inventory". They are being called "Shadow" because they are properties not listed in the statistics compiled by The National Association of Realtors, The National Association of Home Builders nor the US Dept of Commerce.

No longer even questioned as a myth, "Shadow Inventory" is creating quite a stir. Speculation is running rampant and it is no wonder why. The US real estate market hasn't experienced such a phenomenon at this level before. So even the top experts in the financial, banking and real estate markets can't agree on what will happen nor to what degree.

At best, it can be said that it is a very complex situation. Banks claim to be trying to save the economy while not having to sell properties at huge losses. Meanwhile ,some economists are accuse  banks of trying to artificially control supply and demand, which is leading to legislation debates over whether or not there may be unfair and deceptive practices going on.

Buyers are searching and demanding information. They are raising questions such as "Where is this excess inventory?", "When will the next wave of this inventory hit the market?", "How large is this inventory?", "Will this inventory cause a decline in market prices?", and "How can offer my home for sale without a loss in this market?".

One can see why so many people may be getting frustrated and impatient for answers as real estate agents are left reeling as they try to come up with real answers. They, too, are searching for answers on what to expect in the upcoming months and years as these homes hit the real estate market. The top Realtors are staying on top of what the experts and legislators are saying while keeping current with the constantly changing homebuyer guidelines.

Meanwhile, there is some good news to report. Fannie Mae is currently implementing the Deed for Lease^TM Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender. Click here for more information. Most experts do agree that it is in the best public interest to try to Americans in their homes during this time of economic recovery.

Rachel Valentino is a respected and accomplished Realtor in the Washington DC real estate market. Log on to her website, the Atlantic Coast Connection, to learn more about her and view available properties or contact her to discuss your selling opportunities. You can count on her to be on top of the hottest topics and give you sound advise on real estate subjects.