TenantAccess Helps Handle Shadow Inventory
After FirstAmerican Corelogic found 1.7m homes in the shadow inventory, TenantAccess will offer a range of programs to manage this backlog of residential foreclosures. TenantAccess combines the resources of property preservation and REO maintenance by partnering its national presence of property managers with Field Asset Services, the property preservation company. Its programs include Tenant Protection Response, deed-in-lieu leases, and rehabilitate and resell strategies – giving banks, lenders and investors an automated approach to process the “shadow inventory” of foreclosures. As of October 2009, 30% of properties that have been in foreclosure for 12 months have not reached the market, according to Lender Processing Services (LPS), a real estate data provider. That’s twice the level of the previous year. Also, the amount of loans deteriorating into delinquency is more than twice the number of foreclosure starts. “There are potentially millions of homes yet to undergo the foreclosure process and be put back on the market causing the rapidly growing shadow inventory,” said Paul Hayman, President of TenantAccess. He added that banks have two choices when dealing with more idle assets. They can ride out the storm or rent the vacant homes to offset holding costs. Write to Jon Prior.