Below are Washoe County Notices of Default (NODs), Notices of Sale (NOSs), Trustees Deed Filings (TDs) and New SFR REO Listings statistics for July 2013 provided to us by our friends at Ticor Title of Nevada, Inc. [Click on the chart below to enlarge.]
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. In July there was an uptick and banks are gradually starting to record Notices of Defaults. So why the significant decrease and caution from the banks? 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 was 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 but more importantly to prepare for SB321. They do not plan to have a sudden surge of defaults but a steady flow of defaults in the coming months. SB321, a new foreclosure bill, 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.
Notices of Sales, Trustees Deeds and New REO Listings increased in July.
Inventory in Nevada is still low and the real estate community is concerned. In the summer months, inventory usually is up, but in July new listings went down in both the Short Sale and Non-Conditioned areas. REO’s only went up a little. Median Sales Price in July also went down 3.2% from June. Rising interest rates have definitely changed the market and buyers don’t have the purchasing power they had in years past.
The market is a roller coaster, so hold on.
related post: Washoe County foreclosure-related recordings – June 2013