asshattA 95% drop in Notices of Defaults?  What’s going on here?

NOD filings crashed to 14 in June, down from 254 in May and 287 in April.  NOS filings fell 45% to 110 in June, down from 198 in May and 174 in April.  Trustee’s Deeds also fell, but not as dramatically – 65 filings in June, down from 75 in May and 76 in April.  If you like roller coaster graphics, check out the chart HERE.

A lot of this seems due to the “Homeowner’s Bill of Rights” that prohibits dual-tracking of defaults – the banks can no longer be processing a foreclosure while simultaneously negotiating a loan modification or short sale with the homeowner.  I’ve heard that many loan servicers have decided that their paperwork is suspect enough that it is cheaper to just restart the FC process.  And with rising home values, there are more homeowners at or approaching the above water line.

The median SFR price in Washoe shot up 6% last month to the cheers of the realtors.  My preliminary read on June looks pretty flat based on the Assessor’s data (which lags 10 days or so).  That is a good thing – unless you like bubbles.

Grandma’s houses – It happens every year around this time, but the MLS is rife with new listing homes that have been owned 20+ years and will require a decade of de-brassing and de-oaking.  But they are “Standard Sales!” “Won’t Last”.  “Show and Sell.” “They Don’t Build Them Like This Anymore”.

Be careful out there.  There is a lot of crap on the market right now masquerading as great values, 2005 buys that think they are back to equity sale territory.   I see the market as pretty unstable and potentially dangerous right now.