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The May foreclosure numbers for Washoe County are in, and we continue to set records in all categories. Notices of Default totaled 554, up from 513 in April and 179 in May 2007. Notices of Sale totaled 374, up from 313 in April and 116 in May 2007. Trustee’s Deeds totaled 233, up from 187 in April and 56 in May 2007.
Where are these defaults happening and are there any trends? NOS filings typically include the property’s zip code, so we can get a pretty good look at the geographic distribution. And by looking percentages of the total number of NOS’s by area, we can see if the loci of the hotbeds are starting to creep.
I’ve combined a couple zip code regions. 89402 Crystal Bay with 89451 Incline Village. 89508 Cold Springs is in the process of splitting off from 89506 North Valleys, so the current zip code is not always correctly identified. Likewise, 89519 Caughlin Ranch is a fairly recent split from 89509 Old Southwest. The total number of NOS’s in the chart exclude commercial or developer filings.
| Zip Code |
May 2007 NOS |
% of Total |
May 2008 NOS |
% of Total |
|
89431 |
10 |
8.7% |
24 |
6.7% |
|
89433 |
2 |
1.8% |
27 |
7.6% |
|
89434 |
13 |
11.3% |
18 |
5.0% |
|
89436 |
21 |
18.3% |
45 |
12.6% |
|
89439 |
1 |
1.8% |
0 |
0% |
|
89441 |
0 |
0% |
3 |
.8% |
|
89451/89402 |
5 |
4.3% |
7 |
2.0% |
|
89501 |
0 |
0% |
0 |
0% |
|
89502 |
8 |
7.0% |
29 |
8.1% |
|
89503 |
3 |
2.6% |
14 |
3.9% |
|
89506/89508 |
21 |
18.3% |
85 |
23.7% |
|
89509/89519 |
5 |
4.3% |
23 |
6.4% |
|
89510 |
0 |
0% |
3 |
.8% |
|
89511 |
3 |
2.6% |
15 |
4.2% |
|
89512 |
8 |
7.0% |
21 |
5.9% |
|
89521 |
9 |
7.8% |
14 |
3.9% |
|
89523 |
5 |
4.3% |
29 |
8.1% |
|
89704 |
1 |
.9% |
1 |
.3% |
|
115 |
100.3% |
358 |
100% |
smarten
Thanks for the data Mike.
You know; a trustee’s sale IS a sale. So I’m wondering if trustees’ sales are included in the county’s official sales numbers/median pricing reported by UNR’s Center for Regional Studies?
And given NODs are up from last month, would we be correct in concluding June’s, July’s and August’s trustees’ sales numbers will likely be higher?
358 trustees’ sales for May should be more than the number of sales reported on the MLS. Add the two numbers together; assume 55% of MLS sales are REOs; and another 5% or so are short sales; and you’re left with a very sobering picture!
GreenNV
The Assessor codes foreclosure sales differently than standard sales (3BF vs. 2D or 1G), so they are not picked up as sales by the Center for Regional Studies in their reporting.
When you factor out the multiple NODs on properties due to 2nd loan or HOA defaults, about 90% of NODs are going to NOSs right now, and about 75% of NOSs are going to TDs. Based on May’s 554 NODs, look for about 325 TDs in September (255 in June, 285 in July, and 310 in August).
The pipeline is full of REOs and future REOs. There goes the Summer selling season for Joe Resale.
Grand Wazoo
Sorry for the lame question – I understand NOD, I understand NOS – but a Trustee Deed means the property went back to the lender, or the lender’s representative (Trustee?), right?
smarten
No Grand Wazoo. I’ll try and explain.
A Trustee’s Deed is a document that conveys title to property [similar to a grant, quitclaim or any other type of deed] except it is given by the trustee under a deed of trust against that property. The trustee is agreed to and appointed in the original deed of trust that is executed by the borrower. The deed of trust gives the trustee the power to sell the property after default.
So once there’s a default and the beneficiary elects to exercise the power of sale remedies under the deed of trust, he/she/it directs the named trustee [or substituted trustee] to start the foreclosure process. At that point the trustee records a notice of default [“NOD”] and if that default is not cured within the statutory period, the trustee records a notice of sale [“NOS”]. If the default is not cured prior to the date scheduled for sale, the trustee conducts a public sale at the place and time designated in the NOS.
After the trustee’s sale, the trustee conveys title to the property to the purchaser at that sale, whomever it may be. If no one outbids the beneficiary’s opening bid, title reverts back to the beneficiary [generally the bank] and a trustee’s deed is given to the beneficiary [by the trustee]. However if someone else outbids the beneficiary, the trustee’s deed is given by the trustee to that high bidder.
Understand?
John Newell
Mike,
Do you have any idea how many of the TDs for May were owner occupied properties?
billddrummer
Interesting chart, and thanks for keeping this blog up.
It looks to me like creep is beginning to extend to the higher-value, more recently built-up zip codes. For example, 89441 reported no NODs in May 2007, but 3 in May 2008; 89506/89508 (NW/Somersett), saw a 4-fold rise, and NOSs in 89511 quintupled.
As you commented, Joe Resale is in for a rough summer.
Future Buyer
Yes, Joe Resale is in for a rough summer and beyond. There are about 8 houses for sale on my street. Someone that bought in 2000 priced their house 200k below everyone else (they are track homes and very similar)–the house sold in less than a month. It was a 2003 price according to Zillow! So between creep and aggressive sellers I feel sorry for 2005-2006 buyers! My advice to sellers would be if you can afford to price your house to 2003-04 prices–it will sell. The market could be good again if prices weren’t so high.
billddrummer
Future,
Good advice if there’s equity left. The problem I see is in the folks (as has been shown elsewhere, not as many as people believe) that bought with little or no skin in the game at the peak. Those are the ones who will be stuck for years.
If you want to sell and have enough equity to drop your price to pre-boom levels, you’ll get out. Otherwise, be prepared to sit tight for a long while.
Barton
Who would have ever thought that one could buy a 700 sq. ft. condo in Reno for $40,000?
3880 Leonesio Drive. The very first listing in the MLS. Now this place was never going to make the cover of Better Homes and Gardens. But $57 a sq. ft. is a sign of the times.
I think one can buy a 700 sq. ft. condo at the Montage for about 9 times the cost of this unit. Hard to say which one represents the better value.
DERRICK
hahaha stop stop stop.. I can’t stop laughing!!
stjoe56
The Montage theoretically represents a lifestyle. My wife and I travel a lot. I would rather leave my unit in the Montage empty for six weeks than my house.
One of my motivating moments was when we came back from a long vacation (we were unreachable) and discovered one of our 20 foot trees had fallen down and blocked the driveway. It missed the garage roof by a few feet. I still shudder when I think of the damage that could have occurred and the roof been damaged while we were gone.
SJ
DERRICK
whats wrong Mikez, not laughing so hard about my oil short now? lol
anyways.. I’m assuming we have almost no posts because everyone is waiting for the all telling monthly numbers from diane and guy..
I suspect we will see a downtick in inventory, yet I think the median will come down slightly.. somewhere in the 260k range..
come on diane and guy stop teasing us!