Reader elbarcosr noted that the latest default list was the longest in recent memory, and wondered if the foreclosure market might be coming back to life.
Let’s hope so!
If the NAR would have been looking out for realtors, they would have insisted that the foreclosure process be allowed to run its course, and clear the market. Instead, they lobbied for foreclosure-rescue programs from the government, and now we have a mushy unknown distressed market – again.
Auction.com is one of the culprits, and we just don’t know what to expect from them, other than mis-direction. Back in June, we saw them try to auction a tenant-occupied home that Chase has owned since 2011:
It never closed escrow, and has never been on the MLS – instead, it’s another bank-owned property sent to foreclosure purgatory.
Auction.com is also known for conducting price discovery for NationStar on their short sales. Auction.com will market the home and conduct online bidding even though the seller has a written contract with a buyer. Nationstar has a right to sell their short sales for top dollar, and this process helps to expose any shady dealings by the listing agent, but it doesn’t help the reputation of Auction.com.
Though auction.com is the most visible player in the foreclosure market, we can’t judge the trend by their advertising. What matters most is whether the lenders and servicers are going to liquidate any remaining defaulted properties, especially now that prices are up?
Has Nationstar or other servicers been ramping up production in light of the higher prices? Not really – here are the notices issued over the last 12 months in San Diego County:
The foreclosure market has been rife with speculation and intrigue, but we always seem to end up with a nothing-burger. But I’m giving it another chance – I signed up to be a Zillow foreclosure specialist, figuring it can only get better from here.
I’ll be on flood watch!