Our friends at First Centennial Title have produced the chart below depicting the timeline of a typical foreclosure.
click on the chart to enlarge
Related post: Short sale flowchart
And then in Nevada you have 6 months to wait and hope that the bank does not take you to court for the money they lost…
Guy, can our friends at First Centennial Title tell us where the 10,000 or so missing NODs that have not completed this process gone?
Typical.lol. Nothing is typical anymore. I have worn out a couple good pair of boots waiting for the bank to pull the plug on people stuck in nod hell for over a year, the longest yet is 2 years in nod hell..
The 3 stooges have let the inmates run the jail.
Obama, Geithner, and Frank..scary times. Even more scary when you think Barney Frank is Moe!!!
We all know where those 10,000 NODs are. Being held back by the banks, who will trickle them out on to the market over the next several years.
Same organization now thinks it can run health care.
God Bless America and please sir do it soon.
Thanks for the chart.
In a perfect world, this would be a 120 day process.
A new wrinkle is that a mediation certificate now has to be filed prior to the NOS being recorded. Most of the cases I’ve reviewed show the grantor waiving mediation, allowing the foreclosure to proceed.
But the funniest thing about this process is the time the lenders are taking between the actual default and the recording of the NOD. I saw one case where the NOD was filed in March 2010 for a payment default that occurred in April 2009!
Letting people live rent free for a year isn’t helping to clear the shadow inventory, or make pricing more accurate.
A good deal for the homeowner, a bad deal for everyone else.
When the Gov’t knocks on you door and says, we are from the Gov’t and here to help
I see the Kool Aid Narrative is alive and kicking today. First the Narrative was that the government was terrible so we had to let the financial markets make the rules without interference — more free was more better. That Narrative lead to the greatest financial collapse since the Depression, with capitalism falling flat on its face in a pool of derivatives.
So the Narrative has been amended. Now the Kool Aid Narrative is that the problem lies with politicians in Washington. Of course these guys weren’t even around for the collapse but when you’re selling a Kool Aid Narrative you can’t let a few facts get in the way of a good story.
Seems like the Obvious Narrative would be that unregulated financial markets are not a good idea. That’s a lesson that we seem to have to keep learning every ten or fifteen years. And you’d think that even a dog learns …
Moreover, why worry about someone from the government? I’d be more concerned about someone showing up at the door, announcing they were from ABC Bank or XYZ Insurance Company, and telling me they had come to help.
Is there any way to know how many people out there get deficiency judgements? Do those things get filed with the recorder?
Don, where do you get the idea that the problem NOW lies with politicians? It never left them. They created this mess by passing GLBA in 1999. They paved the yellow brick road for the banks. They opened the gates to hell. Having no regulations (rules) for the banks is akin to throwing the Uniform Building Code out the window and letting every contractor build the way he sees fit and can profit the most.
That’s not to say every contractor (or bank) is shady but its always the ones that are that make it bad for the rest.
It’s hard to say. There have been some news stories about homeowners in other states receiving deficiency judgments years after a foreclosure has been completed. But in NV a lender has 6 months from the date of foreclosure to petition for a deficiency judgment hearing. If the lender fails to make application during that period, the right to the judgment is forfeited.
Smarten has a deeper knowledge of the process than I do, since I’m not an attorney.
A long rambling answer to a short question. I haven’t heard of anyone being sued for a deficiency after a foreclosure. I’m sure it happens–just haven’t seen it in my experience.
Sully — I agree with you about the GLBA. Completely. But the GLBA was the legislative result of the Kool Aid Narrative which held that capital markets were self organizing, self regulating, and, if left to themselves, would produce optimal results. As history proved yet again, while capital markets are largely self organizing, they are never self regulating, and, if left unregulated, will produce a never ending series of financial crises.
You’re essentially arguing that the government is responsible for the failure of the capital markets. I see the cause and effect relationship between the lack of regulation and the failure. But that doesn’t mean the government is responsible. To claim this is like claiming the police, not the criminals, are responsible for the crime, because, if the the police did a better job policing, the criminals wouldn’t be able to commit the crimes.
The Kool Aid Narrative held that the government was at fault for economic growth which was lower than possible because it didn’t give the financial markets sufficient freedom. When the GLBA gave the markets this freedom, the markets spun out of control. Now the Kool Aid Narrative is that the government created the crisis by giving the markets too much freedom. The only constant here — and why the narrative is the Kool Aid Narrative — is that it’s entirely and impossibly inconsistent, the only consistency being that the government is ALWAYS responsible for any and all failures.
FWIW I do agree with you (I think you do believe this, if not, my apologies) that government efforts to keep people in their houses is misguided and counter-productive. But this isn’t the root cause of the problem.
Ok Don, that was much clearer. I did get the wrong impression from the first post.
Don, here is an article (Feb/2009) written by Phil Gramm. His version of what went wrong. It’s an interesting read, even though he passes the hot potato back to Greenspan, whom we know passes it back to Wall Street which in turn passes it back to Congress. But what the heck it’s fun reading. 🙂
Catherine, there is no way to know how many, if any, lenders are seeking a deficiency judgment. This is because an action to recover a deficiency judgment would have to be commenced in the District Court. There is no way to search the District Court docket by type of action. At least, there is no public way to obtain that info.
It has been noted many times on this blog that nobody is aware of even a single case wherein a lender is seeking a deficiency judgment against a residential borrower. If anybody out there has info to the contrary, it would be very welcome info.
I am aware of some deficiency actions that have been brought against commercial borrowers on commercial properties. I am unaware of any case in which a lender has sought a defiency judgment against a residential borrower.
It is correct that a deficiency action must be commenced within six moths of the foreclosure sale pursuant to NRS 40.455.
And to RI,
Thanks for the clarification between treatment of commercial borrowers and residential borrowers. Deficiency judgment suits on commercial borrowers are pretty much standard–in fact, most commercial loan documents I’ve seen specifically allow the lender to file suit if a deficiency occurs post-foreclosure.
But, like you, I haven’t seen one for a residential borrower. Now that doesn’t mean it hasn’t happened, just that I’ve never seen one.