Out from the Shadows: an REO hits the market

1817 California #2E was in the "shadows" for over a year.


Per tax records 1817 California St #2E received a Notice of Default in February 2008 and a Notice of Trustee's sale in May 2008. But not until September 2008 did it get recorded as a Foreclosure. Whether one counts the NOD or the NOT or the REO as "shadow inventory", it's still a long, long time from yesterday when #2E hit the San Francisco MLS. There was an attempt to sell as a Short Sale leading up to the REO recording. That was for $498,000 so we'll see if the new price of $454,900 makes a difference.

The last MLS sale was 2005 when it sold for $650,000. It's a 2 bedroom 1.5 bath and per tax records only 787 SqFt. The 2005 listing claimed it was 1,000 SqFt. That's a huge issue for 2BR's. Under 800 SqFt would feel tiny whereas 1,000 SqFt would be acceptable.

But the kicker here is that a bank held onto this puppy for over a year. And THAT is why some fear shadow inventory. What took them so long, and do they have a lot more of them?????