Where are all the NOD and NOS properties going? They are not all being cured, and they are definitely not all going to Trustee’s sales.
The big numbers for 2008: 6555 NODs, 4169 NOSs, 2744 NODs. Just as Notices of Default are recorded, so are Cancellation of Default notices. 2008 saw 1187 cancellations, about 18% of the total (includes both bank and HOA filings).
2008 saw 4169 properties get to the NOS point (NODs filed by the HOA virtually never get to the NOS stage). If you optimistically assume10% of those got cured, that leaves about 3775 net NOSs in 2008. Subtract the actual number of TDs, and you have about 1000 homes in limbo out there somewhere, primed to go REO. This is the shadow inventory we have been fearing. Once the banks take over a property, they seem to be diligent re-listing it. But what they are delaying taking back right now is the story.
There are 156 scheduled TD auctions scheduled this week, which is high historically due to extensions over the holidays. Only 28% are new foreclosures, and the remaining 72% are sales that have been held over from previously cancelled or continued sales. Last week, 38% of the 74 scheduled Trustee’s Sales were new, the rest are hold overs. 90 sales are scheduled both next week and thee week after. You get the picture – the overhang of properties primed to go TD but waiting in the wings equals at least 3x last month’s total sales.
Just thought you might be interested.
Steve
Sittin’ on the books, sittin’ on the books, nobody to process them.
Waitin’ for the bottom, wiatin’ for the bottom, ain’t gonna happen!
nvmojo
I can tell you that the house we just rented was for sale for almost 8 months, just taken off the market sow we could rent it. I feel bad for the owners as they are under water, just had another appraisal done to see if they could do a refi for it. Foreclosed houses and pending short sales are in the neighborhood here near Damonte HS. I’m sure he’s not going to get good news on the appraisal.
Are we worried? Not too much. It’s better than getting screwed by the Vintage Apartments on South Meadows.