Today’s LPS report noted a rise in mortgage delinquencies, and once the mainstream media got ahold of it, you would have thought that the sky was falling. They are drooling for bad housing news, and are quickly jump to many generalized conclusions.
Why is anybody surprised to hear that 7.3 million mortgages are delinquent when virtually every lender in the country tells you that you have to miss payments before they’ll talk to you about your options? You never hear that mentioned on the TV news.
What happens to all of these delinquencies?
Let’s examine the actual events, and how they affect our area specifically.
Here are the trustee-sale results of the big three servicers, ReconTrust (BofA), California Recon (Chase), and Ndex of all property types around San Diego County over the last four weeks:
There have been 1,061 trustee sales that were resolved over the last four weeks, but when 79% of them are being cancelled, the threat of the foreclosure tsunami sure seems manageable.
The quarterly foreclosure stats are out for SD County:
Cancellations have been soaring. If we saw a bunch of them being successfully short-sold on the MLS, it would give hope that the servicers might be getting more proficient in their processing. The cancelled trustee sales that weren’t on the MLS are probably the loan modifications.
Here is a review of 50 cancelled trustee sales of SFRs in the North SD County Coastal region only:
On MLS: 20
Not on MLS: 30
Only four of the 20 on the MLS were active listings, the rest had found buyers, and 12 had already closed escrow. Don’t the other 30 have to be loan modders? Why else would the servicer cancel the trustee sale?
There are only 372 North SD County Coastal SFRs on the current foreclosure auction list (revised from yesterday). Over the last 30 days, there have been only 15 SFRs in NSDCC that have had their trustee sale actually happen, and 89 cancellations. Very frustrating for those ready, willing, and able to buy at the court house steps.
The point? When you hear any national housing news, make sure to cull it down to your local area.