Real Estate Shadow Inventory
Who didn't see this coming?
I really wonder how long it will take everyone to figure out that the only solution to this debt is for lenders to reduce it. Modifications which lead to re-default are not solutions. The outstanding loan balances WILL have to be decreased, either through (correct) modifications, foreclosure, or some other action. The debt simply cannot be paid off at existing levels.
Sheesh!
I really wonder how long it will take everyone to figure out that the only solution to this debt is for lenders to reduce it. Modifications which lead to re-default are not solutions. The outstanding loan balances WILL have to be decreased, either through (correct) modifications, foreclosure, or some other action. The debt simply cannot be paid off at existing levels.
Sheesh!
Labels: economics, real estate

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