🕵️ Banks Are Holding Something Back
Shadow inventory hits 9-month high while delinquencies surge 35%
Mortgage delinquencies blew past Great Recession levels in November, with 60-plus-day lates up 35% year-over-year and even government-backed paper showing cracks.
The damage is already showing up in foreclosure data, which notched its ninth consecutive month of increases in August across preforeclosures, auctions and REO.
Regional banks and special servicers are sitting on swelling portfolios of non-performing loans while shadow inventory stacks up behind them, waiting for resolution.
Download The Outsourced Guide to Accounting to see how disciplined support strengthens every decision you make.
Traditional buyers have stepped back from the mess, leaving lenders holding properties they never wanted to own in the first place.
The rate shock that everyone saw coming finally arrived, and borrowers who stretched to close deals 18 months ago are buckling under payment jumps they couldn’t absorb.
What’s hitting county filings now represents just the leading edge of distressed inventory that will define acquisition opportunities through 2025.
In this edition of the AltReports:
📈 Mortgage Delinquencies Rip Past Great Recession Levels
🏚️ Foreclosures Surge Again as Shadow Inventory Overflows
🔒 Mortgage Mayhem: Sellers Stranded as Rates Skyrocket
🗺️ Distress Hides in the Hot Spots
🏘️ Stagnant Prices, Condo Slump, Inventories Spike
🌊 U.S. Housing Drowning in Sellers as Buyers Sit Out
🏢 Weak Deal Flow and Rising Defaults Signal a Choppy 2026 for CRE
Video of the Week: CRASH in Lennar Home Sales is a Clue of What’s Coming in 2026
Chart of the Week: Transactions UP 5% to $25.44 billion through 3rd quarter
Podcast of the Week: How to Turn Blighted Neighborhoods Into Profitable Real Estate Developments
Mortgage Delinquencies Rip Past Great Recession Levels
Mortgage delinquencies ripped past Great Recession levels in November, with loans more than 60 days late soaring 35% year-over-year and even government-backed mortgages wobbling.
That jump signals a tidal wave of foreclosures and bargain-basement bad-loan deals hitting the market as rate-hiked borrowers finally buckle.
💡 Investor Takeaway: Contact regional banks and loan servicers about their non-performing loan portfolios.
Foreclosures Surge Again as Shadow Inventory Overflows
Foreclosures jumped again in August, the ninth straight month of rising preforeclosures, auctions and bank repossessions leaving hundreds of thousands of homes in limbo.
With delinquencies ticking up and shadow inventory piling higher, traditional buyers are sidelined and lenders are stuck holding a bloated lineup of deadbeat-owned properties.
💡 Investor Takeaway: Check your county’s foreclosure filings weekly and track properties moving through the pre-foreclosure process.
Mortgage Mayhem: Sellers Stranded as Rates Skyrocket
Mortgage rates have shot past 8.5%, slamming the door on moves and trapping owners in deals they can’t escape.
Re-financings are at record lows and listings have evaporated, forcing banks to sit on a mountain of troubled loans.
💡 Investor Takeaway: Reach out to lenders about purchasing the problem properties that' they’re holding off-market.
Distress Hides in the Hot Spots
National foreclosure starts fell 21% in November, but hot spots like Phoenix saw filings skyrocket 95%, and Riverside jumped 61%.
High rates and stretched renters are crushing landlords in those areas, so local distress is spiking even as the national total dips.
💡 Investor Takeaway: Start building your county-specific shortlist now
U.S. housing stumbles: stagnant home prices, condo slump, inventories spike
Single-family home prices barely budged year-over-year, condos slid into negative territory, and November saw inventory hit a multiyear peak.
With sales down at housing-bust lows, sellers are scrambling and price resistance is finally cracking.
💡 Investor Takeaway: Deep discounts are on the horizon as overleveraged owners capitulate.
U.S. Housing Drowning in Sellers as Buyers Sit Out
The market is flooded with 37% more sellers than buyers, leaving listings to pile up and prices under pressure.
Soaring mortgage rates and buyer fatigue are forcing sellers to slash asking prices and sit on unsold homes.
💡 Investor Takeaway: Target markets with high inventory levels and look for sellers who’ve reduced prices multiple times
Weak Deal Flow and Rising Defaults Signal a Choppy 2026 for CRE
Office landlords are hemorrhaging cash as deal flow dries up and tenants ditch space.
Lenders are pulling the plug with tighter credit and default rates are surging.
💡 Investor Takeaway: Lock in your financing and special-servicer contacts now so you can strike when distress peaks in early 2026.