I am confused by the sentence in quotes and what the author is tring to point out and compared to when? May?. “auction notices” (notice of trustee sale) are the warning 30 days before it becomes an reo but it’s the same house, those are the three stages, reo’s can’t outnumber nods or nots, every reo was 1st a nod and then a not.
Perhaps they are showing that less nots are cured (refi’d or reworked and escaping the trustee sale) as compared to last year or prior years.
That data won’t cause inventory to increase because the house would have been a normal listing had it not been a reo listing so you see a larger percentge of reo’s and not that many more actual houses for sale, what you get is much fewer traditional listings where the owner is occupying the house and current with their payments. Current prices is also keeping potential normal listings from listing. Those people not behind in payments and not in any form of distress are opting to not compete with reo prices.
