Bankers Contolling Pace

by | Jul 25, 2011 | Foreclosure Count, Market Conditions, REO Counts, Sales and Price Check | 6 comments

ocerenter noted two posts ago – could the foreclosure crisis be turning a corner?

I join in his skepticism, due to the numerous ways the data can be manipulated – primarily, we’ll never know how many defaulters are not being foreclosed.  The bankers can just let people live for free if they want, and the public won’t know.

In San Diego County, there are more REOs and short-sale closings, than properties being foreclosed (based on MLS vs foreclosureradar stats):

Time Period REO + SS = REO & SS Totals Trustee sales Diff
2010 7,372 6,332
13,704
11,850
 +1,854
1H11 3,844 3,250
7,094
5,588
 +1,506
2Q11 1,999 1,710
3,709
2,571
 +1,138
June 672 570
1,242
769
 +473

If anything, the liquidation flow indicates that the bankers have become better at managing the pipeline – as long as they keep it around 1,000 properties per month. At least they are providing some inventory!

But what about the shadow inventory? Will the underwater folks provide an unmanageable event for servicers in the future? Not as long as selling about 1,000 properties per month is acceptable to the bankers and investors. Defaulters will just have to wait in line!

6 Comments

  1. Jim the Realtor
    Jim the Realtor on July 25, 2011 at 10:24 am

    Contolling = new word for “con men manipulating all events so to appear calm and monotonous”

  2. no_techie
    no_techie on July 25, 2011 at 10:59 am

    Just wondering when a vocal renters’ rights group is going to start a ruckus about defaulters getting to live for free.

  3. aljanet
    aljanet on July 25, 2011 at 11:47 am

    I am renting in North County Coastal and our building has about 200 units and first time I have seen in years that it is 100% leased and the asking rents have gone up, on average, 10% from last December.

  4. shadash
    shadash on July 25, 2011 at 12:24 pm

    This is sickening. The scammers, cheaters, and deadbeats are all being rewarded. Average joes get to pay the bill.

  5. MarkB
    MarkB on July 25, 2011 at 12:52 pm

    “defaulters will just have to wait in line”

    I love it!

    It’s just so bizarro and it’s just so true. Strange days.

  6. JimG
    JimG on July 25, 2011 at 8:48 pm

    Have an asset right now Jim that was foreclosed on in 2009 and he’s still in there with no legal proceeding to evict. Also have a BAC that was assigned 1 year ago and they are just now getting around to the eviction. There is no rush to do anything and judging by the massive amounts of cancellations at the courthouse the best guess would be they are withholding inventory to force a bounce in values.

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