An excerpt and graph from Calculated Risk, click here ^[1] for the full article:

This graph from CoreLogic shows the breakdown of “shadow inventory” by category.

For this report, they estimate the number of 90+ day delinquencies, foreclosures and REOs not currently listed for sale.  CoreLogic estimates the “shadow inventory” (by this method) at about 2.1 million units, and when combined with the visible 4.2 million, the total national inventory is about 200,000 higher than last October’s 6.1 million properties:

^[2]

JtR: The plague has spread thanks to the servicers telling borrowers that they have to be delinquent to be considered for a loan mod – they are pushing people into default.  

Even borrowers with good intentions may come to enjoy not making payments, and the inevitable delays and frustrations cause them to give up altogether – once a borrower with any hardship goes six to twelve months without making payments, it has to be addicting.  I’m surprised the group (in red above) has been shrinking lately!