The Numbers Are In: 46 Months to Clear the Distressed Housing Supply
Standard & Poor’s Rating Services based on first-quarter 2012 data has produced its estimates. Regional procedural variations on judicial/non-judicial have provided much information on how much time is needed to clear the backlog of nonperforming loans.
“S&P includes in the shadow inventory all outstanding properties on which the mortgage payments are 90 or more days delinquent, properties in foreclosure, and properties that are REO. The agency also includes 70 percent of the loans that became current, or “cured,” from 90-day delinquency within the past 12 months because S&P says these loans are more likely to re-default.”