The housing shadow inventory is in part being fed by re-defaults on modified mortgages.
The recent spike in re-defaults may have been caused by the release of iPhone5
(impulsive borrowers would forgo mortgage payments to buy a new phone). That's a
frightening thought (and an amazing achievement for Apple).
picture however points to a decline in shadow inventory in 2013. JPMorgan
anticipates 650K of re-defaults (could be worse if Apple comes up with a new
popular product) and 1.2 million of new delinquencies. At the same time existing
delinquencies are working their way through.
The forecast is a net 380K reduction.
Via Soberlook .
Link to original : http://soberlook.com/2012/11/jpmorgans-forecast-for-2013-shadow.html