Realty Trac reported this morning that foreclosure filings were above 300,000 in May for the 15th consecutive month, coming in at 321,920.
No news here as the coming real estate collapse is real and approaching. The more important question is when this shadow supply will begin to hammer prices downward? When will banks actually take possession of the properties?
The bigger story from Realty Trac this morning was that bank repossessions (REO's) hit a record monthly high for the second month in a row at 93,777.
When banks finally take ownership of the properties in foreclosure they will begin to put them on the market for sale. It is at that point the shadow inventory will become the real inventory.
It appears that process is finally beginning.
As mortgage applications, existing sales, and new homes sales continue to drop off a cliff after the expiration of the home buyer tax credit, the shadow inventory should be another welcome boost to the real estate recovery.