Yesterday Sean saw these NSDCC January numbers posted here:
REO resales on MLS: 21
Short sales on MLS: 14
Trustee sales, REO: 32
Trustee sales, bought by 3rd party: 18
Trustee sales, cancelled: 56
and he asked about the cancelled trustee sales – how do they break down?
I ran each of the addresses through the MLS and foreclosureradar, and was surprised to see that NONE of the 56 have re-started the foreclosure process, at least not yet.
Here is the breakdown:
MLS short sales: 19
MLS sale, not short: 1
MLS active listing: 2
Cured for now: 34
The short sales closed over the last three months, that’s why the 14 and 19 don’t jive – the servicers are slow to mark them cancelled.
I think we can assume that the ‘cured for now’ category, those cancelled defaulters who were never on the MLS, are the loan modifications. Some folks may be bringing in money to cure their default, but I’d guess those amount to less than 10% of the total.
If the real estate machine is handling 56 defaulters per month, and 50 trustee sales happen successfully per month, we’ll be treading water for the next decade or two. There are 389 SFRs on the NOD list, and 532 on the auction list.
Bank of America and Wachovia are both rolling out their new and improved short-sale processing packages, and it looks like they are hoping to close short sales within 60 days. We’ll have more on them as they develop.
With the HAFA plan directing servicers to pre-approve short sales, we might see improved timing, but nowhere do I see anyone stopping the graft and corruption that dominates the SS process. There are no rules, regualtions, or laws to guide listing agents on how to handle a short-sale listing, and when left to their own devices, they seem to have great difficulty with handling them honestly and ethically.
It’ll be another frustrating year!