Below are Washoe County’s foreclosure-related statistics for February 2012 provided by our friends at Ticor Title of Nevada.
Click to enlarge…
Notices of Default (NODs) remain low. Consequently, Notices of Sale (NOSs) continue to slide. And a decrease in the number of bank-owned properties hitting the market can now be observed – exacerbating an already present inventory shortage.
Commentary from the Ticor Title report…
Notice of Default (NOD) filings decreased by a whopping 2 from January and is still affected by the New Law (AB284) that was effective October 1, 2011. The Notice of Defaults are primarily private beneficiary and local banks/credit unions. As predicted, the slow of Notice of Defaults are also affecting the Notice of Sales (NOS) which decreased in February by 83 and may continue to decrease even more in months ahead. Trustee Deeds increased slightly, but remember these are probably properties that have had a postponed sale or could be affected by foreclosure mediation and are now either bank owned or were purchased by investors. Based on the NOD & NOS filings, Trustee Deeds will continue to dwindle in future months. The new single family residential REO (Bank Owned) listings decreased even more in February and it is now concerning the real estate industry. Based on some other numbers, the inventory is getting gobbled up by buyers and is leaving very little inventory for future buyer demand. Word on the street is that many agents are getting multiple offers on properties. What kind of inventory will we have in the future? Only time will tell…
related post: Washoe County foreclosure-related recordings – January 2012
Raymond
As was predicted here about 6 months ago, the sales volume is going to start to take some hits as AB 284 exerts its influence. Hopefully Guy and his realtor (all 2,537 of them) colleagues have stashed away some cash as sales volume dissapates. Hopefully they have stashed away some significant cash as AB 284 isn’t going away for at least 18 months.
Twister
Where is the shadow inventory that the industry and others have said is out there? If the banks have been holding back, wouldnt this be the time to put it on the market to meet the buyer demand and fill the AB 284 void that is beginning? I guess the next few months will show if the banks have been sitting on a pile of foreclosures from the past couple of years or if they have already unloaded the majority of what they had. If the latter is true then we are going to shoot right into a sellers market and things could get very interesting.
Carney
What do you think has been fueling the REO stream for the past 6 months if not the shadow inventory? The foreclosure spicket got shut off on October 1. I agree that, eventually, AB 284 is going to result in the end of new REOs. But I diasagree that that moment is at hand. I expect to see a steady stream of NOSs and TDs for several months yet to come. All you have to do is go to the Recorder’s website and see how many NODs were recorded in the past three years. Then look to see how many cancellations were recorded, and how many TDs recorded. You will observe that there are thousands of NODs still in the pipeline.
Twister
Since AB284 it was always thought by the industry that it would take several months before the affects of the law would start to affect the number of new foreclosures being listed because of the delay from a NOD to a foreclosure. So the last 6 months was just the flow of foreclosures into the market that had been going on before AB284 began to slow it down here just recently. I think the new REO listings numbers over the next few months will be interesting to see if the banks really are running out of foreclosures or do they have shadow inventory to fill the void that has already begun.
Sully
What’s interesting in this chart is REO listings are falling even though TD’s are increasing and staying within it’s long time range of 200-400. Feb. TD’s were twice as high as REO listings – so where are these TD’s going? Into Rentals?
Don
I regularly go to Washoe Co Assessor site and click on Search Parcel. Type in a street name only and you’ll find many reo’s that are a few months old to a year or more that have never been listed for sale. So there definitely is a shadow inventory that has not been released for sale yet. If you are interested in one of these homes, I suggest to call the lender/owner of record to check the status of the property.
Washoe County foreclosure-related recordings – March 2012 | RRB Home
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