That ominous shadow inventory of repossessed and soon-to-be repossessed homes is getting smaller. Standard and Poor’s (S&P) has released its third-quarter shadow inventory update. The agency says the volume of distressed assets included in its assessment dropped from $ 405 billion in the second quarter to $ 384 billion in the third. This figure has been on a steady decline since mid-2010. At current liquidation rates, S&P says it will take 45 months to work through the industry’s shadow inventory. Article Feed