UNRs Center for Regional Studies used to publish a monthly report on Foreclosure Sales. You could compare this to the monthly foreclosures and sort of gauge the level of “shadow inventory” building up. Alas, budget cuts at UNR have curtailed the CRCs staffing and ability to continue their fine reporting.
There are a lot of vintage 2009 (and some 2008) defaults just showing up on my daily search of NODs. Some are refilings from NODs that have expired, but many just seem to have been lost in the system. The majority are Recontrust filings, but no servicer is immune.
The one place where I thought the banks were doing a pretty good job was in getting their foreclosures back on the MLS and sold once they actually foreclosed. Most TDs are listed within a month, some a little later if they need cosmetics or if there are eviction problems. But 2 new listings this week belied my beliefs:
– 3170 Plumb – Sold for $215,000 in 5/2000, and again for $365,000 in 4/2004. The NOD was issued on 3/10/2009 for a missed 12/1/2008 payment, and the TD was recorded on 12/3/2009. I can’t see any deaths, bankruptcies, liens or other reasons in this house’s history to explain why it has been off the market for close to 2 years.
– 55 Pronghorn – Gotta love the “Not Yo Cheese, LLC” moniker along way to foreclosure! The former owners build the house in 1997 pretty much for cash, then bumped the debt up to $650K in 2003 and then took a $927K Option ARM out in June 2007. (My guess is that the house funded a failing business, but that’s just a guess). The NOD was file in August 2008 on a missed February 2008 payment. The bank took the house back in a Deed in Lieu of Foreclosure (DIL) in January 2009. At the current listing price, the bank is going to make out just fine.
Why have these homes been just sitting there for nearly 2 years without any action? How many more like them are out there?
DILs are a wild card. There is simply no way to track how many properties are going back to the banks as DILs instead of TDs, and what happens to them later. Does RealtyTrac pick these up in their figures quoted monthly in the RGJ? Is there a strategy to get the bank to accept a DIL instead of the full foreclosure process, and is it more positive for the defaulter? Looking for your input, folks.
Ok, so Cedarwood is becoming my favorite street for odd listings. 5305 just hit the market. Whats up with that? “Has possibilities” but no water? This is just up the street from 5230 Cedarwood, the mystic castlesque thingie.