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‘Shadow inventory’ keeps shrinking

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Homes classified as "shadow inventory" fell to 2.3 million units in October, down 12.3 percent from a year ago but still representing a seven-month supply of homes, according to a monthly report from real estate data firm CoreLogic. Homes with seriously delinquent loans attached to them made up 1.04 million of October's shadow inventory. The balance included 903,000 homes in some stage of the foreclosure process and 354,000 bank-owned properties. Shadow inventory refers to the number of distressed homes likely to hit the market soon, but which aren't yet listed for sale in a multiple listing service or included in traditional pending supply metrics. October's shadow inventory tally represents 85 percent of the total 2.7 million homes identified by CoreLogic as having seriously delinquent loans, in the foreclosure proces or "real estate-owned" (REO). Seriously delinquent loans are defined as those overdue by 90 days or more. "We expect a gradual and...