I suspect it will get much worse. When the rates were trending flat and people had a chance at a refi, our NOD to NOT rate was bad at 30%+. When the market continuing to soften, rates and loan service requirement tightening, I’m suspecting the NOD to NOT rate will likewise rise.

Now the question is will the banks step up the process on the foreclosure to move them back to REO and for sale status and get them on the market come January or will they languish and get them on the market come next June.

Imagine the potential perfect storm coming for San Diego in the spring. Annual year over year losses in the median, official recession in the economy, 1200+ foreclosures per month hitting the MLS and interest rates above 7% for great credit…