I would disagree with the assertion that only a small minority of defaults go on schedule. I don’t have actual numbers for this but I have a lot of anecdotal experience combing default records. Prepping a foreclosure tour (yes that’s me with the bus) is more work than it looks like.
That aside, I do think it worth mentioning that I am seeing more and more events in the foreclosure process get delayed. Sometimes they are delayed by years.
I do not know to what extent this is due to just the overwhelmingly huge number of defaults or as part of some attempt to mitigate the growing inventory.
On the topic of inventory, I had an interesting conversation with an agent I am acquainted with today. His firm handles scads of property management. He said that they are in discussions with major banks to put large portions of their repo portfolio into the rental pool.
If this is true, this means that we may see the overall inventory fall relative to the total repo inventory. In terms of sheer numbers it may continue to rise but the relationship of repo to listings may drop.
