Still looking for signs of the foreclosure tsunami beginning – now that the MLS requires that REOs be marked clearly, it’ll be easier to track. Here are the number of new detached REO listings, per week in San Diego County:
| Recent Week | New REOs | # Already Marked PEND/CONT |
| June 10-16 | ||
| June 17-23 | ||
| June 24-30 | ||
| July 1-7 | ||
| July 7-14 | ||
| Totals |
The new REO listings are flying off the shelf, relatively.
Of those listed since June 10th, 63% have already been marked contingent or pending. There have been 2,567 non-REOs listed in the same time period, and only 30% of those have found a buyer.
Add a price parameter of $800,000+ to detached listings since June 10th:
| REO/Non-REO | # of New Listings over $800K | # Marked PEND/CONT |
| REOs | ||
| Non-REOs |
But with 3,715 NODs filed in June, it’s likely that we’ll be seeing more REO listings!
I’m seeing this as well just searching through the online MLS listing websites. Woohoo!
Any idea how many of these are showing up online on redfin/zillow? I’ve noticed many REOs are posted in MLS but not online.
I don’t think Zillow has an automatic upload of MLS listings, like Redfin. REO listing agents aren’t taking the additional time to actually market their listings, as you’ve no doubt have seen they are barely getting remarks and one photo on the MLS.
Redfin should show all MLS listings, and even an occasional one that’s not on our MLS, but on the LA/OC/Riv MLS that Redfin picks up by location.
If there are REO listings on Sandicor’s MLS that aren’t on Redfin, the only reason I can think of is because the upload hasn’t happened yet for that day/hour?
You must be on them!
As Foreclosure Activity Surges, Obama Considers Rental Option
http://www.calculatedriskblog.com/2009/07/as-foreclosure-activity-surges-obama.html
“Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years … Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans”
****
“Under California’s foreclosure code, a foreclosure sale can be postponed repeatedly for one year before a new Notice of Trustee Sale has to be filed. While postponements are quite common, they have reached record levels in recent months, swelling the number of scheduled foreclosures 90.1 percent year-over-year to 113,141.”
RMcM – thanks for the article – it made my day. I wonder what entity would be the title holder/landlord in this “surrender” scenario???? If this happens, were done.
This is just the tip of the spear. The banks haven’t released the homes yet here in Northern CA. Those numbers are going to mushroom.
P.S. Read the comments section in McM’s forwarded article for some good comedy. Guess we realtors may soon add a new designation to our business card – “Obam-O-Rento Specialist.”
I don’t personally deal with Capital Hill much but I have a co-worker who does. She tells me it’s entirely common for important bills such as mentioned here to have completely blank sections while they are being floated, with the “details to be filled in later.” This is partly why pork (earmarks) get in there so easily, people can write things into the bill — say, late the night before a vote on a giant bill — and if the additions aren’t particularly noticed and the bill is passed, hey presto it’s now law. So bottom line, while it’s always enjoyable to get riled about something someone said once about how a bill might eventually be written, it’s probably premature to start pulling hair out.
This slow release of REOs really doesn’t surprise me. Wouldn’t it benefit the lenders if they held their REOs off the market for as long as they can and slowly release them over time? I would think a few hundred bucks in upkeep a month for a forclosed property would be cheaper than the thousands they’re going to lose if they flood the market with REOs and depress prices even further. It wouldn’t surprise me at all if the lenders’ rose colored glasses are tricking them into thinking the “green shoots” everyone’s been talking about are real (they aren’t), that prices really are stabilizing and hitting bottom (they aren’t), and that if they can just hold on prices will start to recover over the next 6 months to a year (it’s not going to happen that fast). Any thoughts?
They should put more homes on the market during the “selling season”, and then back off in November and December. They should also monitor inventory levels, and in areas where there are shortages, be more aggressive in rolling them out.
Sigh… Lenders wouldn’t be able to “slowly” put properties on the market if they didn’t have all our tax dollars keeping them in business. (via TARP)
Banks have a lot of worries right now. It appears their main focus is to delay any writedowns as long as creative accounting will allow. This article has some interesting insights into another aspect, beyond foreclosure…
http://www.nakedcapitalism.com/2009/07/wells-sells-600-million-in-distressed.html
Finally, as the OC Register suggests, a 35 cents on the dollar bid means huge writedowns that banks do not want to take – especially banks still on government TARP life support like WFC. To me, this explains very well why the PPIP program was a failure: if banks can sell distressed assets quietly over time to private bidders, they might be able to delay taking writedowns. But, the price discovery involved in the PPIP program would be a blood bath for banks already capital-constrained. This is why the program has failed.