With more claims the housing market has hit bottom, there are growing indications that this is all based on a convenient fiction around artificially reduced supply. A little-noticed item at AOL Real Estate, based on the same industry data banks and analysts use to tout a recovery, introduce us to the scam in “shadow REO” — inventory deliberately held off the market to hide loses and artificially jack up prices.
|By: David Dayen Monday July 16, 2012 9:40 am|
|By: David Dayen Wednesday March 21, 2012 11:30 am|
There are claims the housing market is recovering. But that ignores the shadow inventory, foreclosed homes that banks have deliberately kept off the market, which number in the millions. With foreclosure starts jumping, this inventory will make its way to the market and sell at a huge discount, reducing prices overall. Now there’s a new scam to allow investors to buy these in bulk and run the old Wall Street financing schemes again.