Washoe County foreclosure-related recordings – May 2012

Notice of Default filings continue to gain momentum – rising 36 percent over April’s number of NODs. Could this be an indication that more banks are figuring out how to comply with the requirements of AB284?

Additionally, for the first time in several months Notice of Sale filings increased month over month. As regular readers know, the local market can certainly use the inventory.

Click on the report to enlarge. These statistics are provided to us by our friends at Ticor Title.

Commentary accompanying the report…

Notice of Default (NOD) filings increased by 21 from April and of course the numbers are still affected by the New Law (AB284) that was effective October 1, 2011.  We are seeing the Banks file more NOD’s each month mostly because they are starting to work through the requirements of the new law. But again, most of the filings are still private beneficiary and local banks/credit unions.  Notice of Sales had a slight uptick but this is could be properties that are working through the process of foreclosure mediation, failed short sale, etc.  Trustee Deeds increased only by 3 and are holding steady.   The new single family residential REO (Bank Owned) listings decreased considerably.  Banks are choosing to short sale and working quickly to process and are closing on properties quicker than ever before.  As mentioned before, inventory in Nevada is down considerably and the real estate community is very concerned about the lack of inventory available in future months for the potential buyer.  We are hoping that the Banks will release more inventory to keep up with buyer demand.   In our area, Real Estate Agents who have listings under $200,000 are getting multiple offers and can’t keep up with buyer demand.  We have recently talked with our offices through-out the Western Region and they too have a lack of inventory.  Is Nevada’s inventory problem caused by AB284? AB284 could be part of the cause, but other states don’t have the exact same law, so what’s the reason for their lack of inventory?  Could the National Mortgage Settlement affect inventory?

 
Related post: Washoe County foreclosure-related recordings – April 2012

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About Guy Johnson

I am a licensed Nevada REALTOR® living and working in Reno, Nevada. Give me a call at 775-722-4011. My team and I will be happy to assist you with your real estate needs.
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4 Responses to Washoe County foreclosure-related recordings – May 2012

  1. Avatar Matthew says:

    We need to keep in mind that, presently, banks have laxed requirements in marking their mortgage assets to market.
    If they process the foreclose (and subsequent sale) then they *must* mark down the asset.

    As a result, banks working to appear more solvent have a strong incentive NOT to process foreclosures and sales in a timely manner because the expense of upkeep or the loss from defaults may be significantly less than the balance-sheet impact of marking down the asset.

  2. Avatar Dirtbagger says:

    No surprise that cities and states have financially over extended themselves. Easy to get caught up in the euphoria that the good times will never end. Giveways like the Star Bonds are really awful decisions. Who in their right minds believed that over 50% of the customers at Legends would be from outlying areas and would bring new revenue to the community.
    Other financial excesses include the train trench and redevelopment downtown. Revitalizing downtown is important, but trying to turn around a 30 year deterioration trend in a few years is an impractical and very expensive proposition. in the early 60’s Portland OR put forth a plan to keep their downtown vibrant. It took nearly 25 years to achieve that goal. Cities should make financial commitments using a sustainable revenue base, not on peak revenue.

  3. Pingback: Washoe County foreclosure-related recordings – June 2012 | RRB Home

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