Notices of default (NODs) nearly doubled in July – increasing 97.5 percent over June’s number. Could this indicate that lenders have finally figured out how to comply with the recent foreclosure law (AB 284)?
Commentary from July’s report [Note: thank you to Ticor Title for providing this data]:
Notice of Default (NOD) filings increased significantly in July. For many months the lenders having been working on finding a way to work with the New Foreclosure Law (AB284) that was effective October 1, 2011. One of the requirements that held the larger banks from starting the foreclosure process, was a notarized affidavit that documents certain information regarding the ownership of the property that is the subject of the foreclosure. This affiant must sign this based on personal knowledge and under penalty of perjury that they are the beneficiary or trustee. Also, the National Mortgage Settlement also has the same language as AB284, so the larger banks like Wells Fargo, Bank of America, JP Morgan Chase, and Citigroup are required to record an affidavit along with the Notice of Default.
As predicted, the slow of Notice of Defaults are also affecting the Notice of Sales (NOS) which decreased again in July and may continue to decrease even more in months ahead.
Trustee Deeds decreased as well to follow suit with the Notices of Sale and Notices of Default trends from months prior.
The new single family residential REO (Bank Owned) listings decreased significantly by 40 listings in July. As mentioned before, inventory in Nevada is down considerably and the real estate community is very concerned about the lack of inventory available in the coming months for the potential buyer. We are seeing more non-conditioned (equity) and short sale properties hit the market which are receiving multiple offers if in the right price range.
Related post: Washoe County foreclosure-related recordings – June 2012