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 donâ€™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.
Miguel W. Maria, P.A., CDPE, e-PRO, TRC.
Sales Manager / Lic. Broker Associate / Member of Weichert, Reators President Club
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