Washoe County foreclosure-related recordings – June 2013

Wow! Check out what happened to the number of new Notices of Default in June. They’ve dropped off a cliff. Erin Schiller of Ticor Title provides a reasoned rationale for the steep decline (see Ticor’s Comments below). Let’s hope the banks figure out soon how to navigate the verbiage of these new bills referenced, AB300 and SB321.
Click on the chart above to see Washoe County Notices of Default (NODs), Notices of Sale (NOSs), Trustees Deed Filings (TDs) and New SFR REO Listings statistics for June 2013. Data provided to us by our friends at Ticor Title of Nevada, Inc.

Ticor Title’s commentary accompanying the statistics…

Notice of Defaults (NOD) decreased significantly from an average of 250 a month to only 14 recorded defaults in June. This reminded me of when AB284 was effective October 1, 2011 and we recorded only 13 in October.  So why the significant decrease? AB284 from 2011 Legislative Session changed the foreclosure procedures for banks and there were concerns by many title insurers and industry professionals about the Personal Knowledge section and Foreclosure Documentation.  From this, an AB284 working group was established by the Attorney General and the areas of concern were corrected.  In the 2013 Legislation, AB284 was changed to AB300 and the changes submitted were approved by the Governor.  AB300 is effective June 1, 2013.  According to a few Bank officials I spoke to, the banks are evaluating the changes and working on their policies and procedures for the changes of AB300 and they do not plan to have a sudden surge of defaults but a steady flow of defaults in the coming months.  Another reason for the decrease could be that another bill became law in the 2013 Legislation that will completely change the foreclosure process even more.  SB321 “Homeowner’s Bill of Rights” will become effective October 1, 2013.  This is also why many banks pause and are evaluating their foreclosure processes and procedures.  SB321 kind of trumps AB284/300 in so many levels.  It recommended that you educate yourself on this bill.
 
Notices of Sales, Trustees Deeds and New REO Listings also dropped comparatively to May. 
 
In prior comments, it has been mentioned that inventory in Nevada is down considerably and the real estate community is concerned about the lack of inventory available in the coming Summer months when homeownership is at its highest level.  According to some numbers provided, new listings on MLS decreased in June comparative to May in non-conditioned sales area, short sale, and REO properties.  In May the Median Sales Price was around $218,000 and in June it increased to around $222,000.  The demand of homes has definitely increased our sales prices, but another NEW market shift and cycle has started to occur in the last few weeks…
 
The last few months it was mentioned that there are hundreds of qualified buyers ready to purchase but are getting beat out by cash buyers and investors.  Now the hundreds of qualified buyers are ready to purchase but have not only the cash buyers to contend with but another NEW obstacle….Rising Interest Rates!
 
What cycle will be in next month?  Stay tuned…

 
related post: Washoe County foreclosure-related recordings – May 2013