Foreclosures edge up, but shadow inventory down dramatically

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The nation’s “shadow inventory” continues to decline dramatically, although the number of foreclosures completed by lenders picked up slightly from April to May, data aggretor CoreLogic said today.

CoreLogic estimates that shadow inventory was down 18 percent from a year ago in April, to less than 2 million homes, representing a supply of 5.3 months. The estimate is based on the proportion of properties that are seriously delinquent or in foreclosure that are expected to complete the process and be repossessed by lenders, plus properties already held in lenders’ real estate owned (REO) inventories but not yet listed for sale in a multiple listing service.

The 52,000 completed foreclosures tracked by CoreLogic in May represented a 3.5 percent gain from April, but a 27 percent decline from a year ago.

Source: corelogic.com.