how do I buy from shadow inventory?

Asked by Noel, Pembroke Pines, FL Mon Apr 23, 2012

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Bill Eckler, Agent, Venice, FL
Fri Jun 15, 2012
That's just it, "shadow inventory" may be anticipated opportunity but it just isn't presently available. Probably the best way to get a leg up on this availability is to begin working directly with an agent or two that specialize in foreclosures. Many times, these people have an idea of what is in the pipeline and may be coming in their direction. If your needs are known and are a good match, you could find yourself on the inside track.

Good luck,

0 votes
Irina Karan, Agent, Aventura, FL
Thu Apr 26, 2012
Hello Noel,

Great question! The banks keep their foreclosed homes inventory out of the public view.
They fix these houses, rent them out, keep them on the books as assets - and drip very few on the market to get the best pricing (that's why we don't see foreclosures flooding the market).

The banks communicate with their REO agents directly, and some agents might now of the house's future ahead of time. In some cases, asset managers are open to hear of the buyer ahead of time - even the note buyers...In most cases though, this is not the case.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes
Jorge L. Ama…, Agent, Pembroke Pines, FL
Tue Apr 24, 2012
Do you currently have a home in mind?
0 votes
Susan J Penn,…, Agent, Weston, FL
Mon Apr 23, 2012
Shadow inventory is whereby the owner of the property is no longer making mortgage payments and yet has not listed the property, so it sits in the shadow. Most of these homes will become short sale properties and the rest will eventually become foreclosures. The only inventory available to a buyer is active inventory.

If you are interested in purchasing short sales, or know of a seller with shadow inventory interested in proceeding with a short sale, please contact :

Susan J Penn, PA, EWM Realtor,
Certified in Distressed Properties
0 votes
Miguel Maria, Agent, Weston, FL
Mon Apr 23, 2012
I agree with Ron. Shadow inventory is inventory that is not available by the banks. Usually they do this in order to manipulate the value of their stock on New York market exchange because they report loses on their books when they sale the property while on the mean time the property still shows as an asset on their books. Also, it might be that they know the property is vacant and they are not ready to do a foreclosure on the property due to the robo signer issue and due to the fact that if they foreclosure on the property they will have to maintain it, pay insurance on the property, property taxes, liens and fees from the city and/or association. The only way for you to purchase properties from shadow inventory will be to wait until the property is foreclosed on. You can always try to reach to an asset manager or go to Fannie Mae which is trying to unload some properties which were already foreclosed on; however, you will required to purchase in bulk (package) where you can not choose which properties you would like to purchase and decline the ones that you don’t like. Also, if I remember correctly the news you will need a minimum amount to invest close to the $700 million and you will have restrictions on selling the property in the following 3 to 5 years (this has not been set yet).

Hope I was able answer your question. If you have any more please do not hesitate to contact me.

Best regards,

Miguel W. Maria, P.A., CDPE, e-PRO, TRC.
Sales Manager / Lic. Broker Associate / Member of Weichert, Reators President Club
Distressed Property Expert / e-Marketing Expert / Transnational Referral Certified
Lead & Relocation Specialist / State Certified Residential Appraiser
Personal Assistant: 954.683.3280
Cell: 786.897.6325

2238 Weston Rd. Weston, FL. 33326
efax: 305.403.3531 web site:

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0 votes
Ron Thomas, Agent, Fresno, CA
Mon Apr 23, 2012
If you know about SHADOW inventory,
you know that they are not listed,
so the answer is, no, you can't.
0 votes
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