May 2011 Foreclosures +

Do you guys even care about the monthly NODs, NOSs, and TDs?  I find them pretty interesting as a market indicator, but then again, I also chase fire trucks.

So for May 2011, NODs fell to 405 from 462 in April and 544 in March.  This is the lowest number of NOD filings since 404 in January 2008.  NOSs inched up to 520 from 514 in April and down from 611 in March.  TDs were also up a tad to 371 from 351 in April, but down from 390 in March.  The chart is here.  It is in Word, so if you double click on it the supporting data will show up.

This was the 4th month in a row where NOSs surpassed NODs.  For a while, it even looked like TDs would surpass the NOD numbers for the month.  I don’t know if the the foreclosure picture is slowly unwinding or if there is a conspiracy going on (check in, Tofu Mary!) but NODs are certainly moving in a positive direction.

Of the 371 TDs, 82 or 22% were purchased by third parties on the courthouse steps.  Even a few months ago, this figure was around 6% up from a historic 2% figure.  NRES continues to be the gorilla in the room – they bought 38 properties and sold 32.

In reading Guy’s recent posts on the percentages of equity, short, and bank owned sales, I realized that the number of equity sales is being GROSSLY overstated and skewed by using the MLS as a data source.  New builder homes listed on the MLS accounted for at least 5% of total sales but would register as an equity or "normal" sales.  Flipped Trustee’s Sales now account for at least 10% and probably closer to 15% on monthly sales, but are also counted as equity sales.  It is far more grim out there for equity sellers than is being quoted, as if the stated data wasn’t grim enough.

Deficiency Judgment filings are definitely on the rise based on what I see from the legal filings in the RGJ.  The big banks are generally conspicuously absent, but the local credit unions are being pit bulls.  Remember "we’re local, we’re your friend?"  Now it’s "we’re local and we know where you live, scumbag."  Wachovia is going after Eastside Development (Lake Ridge Apartments, Nathan Topol et al) for a big judgment.

On a lighter note, CommRow has stepped up to the plate and received a new batch of permits on their project at 255 N. Virginia.  No permits on the parking garage yet, and the "programming agreement" for the trench covet kept getting postponed at the City Council meetings.:

–  BLD11-05082 – $10,000 for interior demolition.

–  BLD11-02928 – $230,000 for a Climbing Wall (a new category for the city!).

–  BLD11-03200 – $95,000 for TIs.  That’s for "tenant improvements" not "terrible idea", at least in city-speak.

Is it just me, or is the West of Wells semi-Historic District looking incredibly flammable lately?  424 Moran went up in flames yesterday.  One one Holcomb a few blocks away 2 weeks ago.   I’m a little confused why Reno Fire Department is not publicizing the 40 or more recent arson fires (some benign, some not so much) that have plagued the are recently.  Flames happen in decrepit older neighborhoods, but it looks like we have a firebug at work.

What do you make of 1621 Phillips?  At $69K, I think it is still a "run away" after visiting it today.

Also checked out 5230 Cedarwood yesterday.  Someone down in Callahan Ranch has GOT to have some stories about this place!  The former  owner has shown up on this site numerous times before.  

Wally World pulled their $12M permit for their new super center in North Whatever.  If you haven’t explored the People of Wal-Mart site you have been missing out on a cultural icon in the making! 


About Mike McGonagle

An architect, business owner, and compulsive public records hacker, Mike reads the tea leaves of the local real estate market from a unique perspective.. A former Chicagoan, Mike earned his MArch from Harvard University. Mike can be reached at or 775-345-7435. His continued musings can be found on the blog.
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9 Responses to May 2011 Foreclosures +

  1. Avatar Sully says:

    Mike, the monthly NODs, NOSs, and TDs charts are interesting. However its accuracy is questionable. By that I am referring to all the govt meddling that manages to corrupt data. Are foreclosures still on hold? If not, wait til next week!

    Case Schiller Index shows prices increasing from 1qtr/2009 – 1qtr/2010 then back down to 2009 level in 2011. It almost looks like the Obama team continued the Bush team methods in first year, then used their own methods in second year.

    With election coming up next year, Obama might decide to take some of the new 2.5 Trillion debt ceiling money and throw it back into real estate. Anything to further confuse the steeple in order to get that precious vote. Yep, another 4 years and I’m sure we’ll all be in or close to bankruptcy court. 🙂

  2. Avatar billddrummer says:

    I find the statistics interesting and I don’t expect government statistics to be accurate. Having said that, I believe your sources are about as good as we can get.

    How much money would it cost to get that house back to habitable?

  3. Avatar billddrummer says:

    I meant Cedarwood for getting the house habitable. And oh by the way, why does the Assessor show the house as a 560 s.f. residence with a 1084 s.f. garage?

  4. Avatar Mike McGonagle says:

    billdd, I think it would be quite inexpensive, based on my nose-to-the-window inspection. Maybe $10-15,000 if you do a lot of the work yourself. Not nice, but habitable.
    – 8-10 windows new new glass.
    – AC condenser unit is missing and needs to be replaced.
    – Paint throughout.
    – Some new carpeting.

    I haven’t been inside, so can’t comment on if the streaky stuff on the walls is graffiti or mold. Was concrete poured down the septic system? Who knows? My sense is that all the damage is subsequent to the old owner giving up on the place and caused by vandalism. A lot of the construction looks like it occurred under the county’s radar, so who knows what remedial action the could require.

    How this ever got classified as a 560 SF unit with a 4 car garage is a mystery. The “garage” never could have been a garage, and is in fact a 2nd unit with a kitchenette and a bath.

    Maybe our long lost Mr. Murray will chime in and offer an opinion?

  5. Avatar Drive by Poster says:

    Mike –

    Interesting comment that the local credit unions are going after deficiency judgments. Do you have an example? I don’t follow the legal classifieds, but have a need to monitor for work the filings in Washoe District Court. I’ve noticed that some of the local CUs are filing suits, but they are almost exclusively classified as UCC suits. I can’t see why a deficiency judgment would be classified as such. So, I’m curious if you have an example from the legal classifieds of a deficiency lawsuit to see how the District Court classified it.

  6. Avatar Pest Control says:

    The people of Walmart is one of the best websites around… what a great way to end your post today!

  7. Avatar runnerman says:

    A lawsuit to obtain a deficiency judgment would not be classified as a UCC case. I too monitor the suits filed in the district court and I am unaware of any deficiency actions having been filed against a residential borrower. Some against commercial borrowers, but none against residential borrowers. For example, the deficiency action against the Lakeridge apartments. And deficiency actions would have to brought in the district court. They would exceed the jurisdictional limits of the justice court. So I am pretty confident in my observations. I would, however, be most appreciative if anybody could refer me to district court case no. that is a deficiency action against a residential borrower.
    Mike may be confused here.

  8. Avatar Mike McGonagle says:

    Take a look at case #CV10-02791 in the 2nd District Court. It looks me like WFB is going after some sort of “breach of contract” action. You can track the borrower on the Recorder’s site and find a WFB Deed of Trust.

    I also specifally recall on case that called out “outstanding HELOC balance” as the reason for the action, but can’t seem to dig it up right now. The HELOC was relatively small, only $30,000.

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