Is it possible to track the average time it’s taking for a house to go from NOD to REO? If lenders dont have to recognize a loss until they actually sell a house, it stands to reason that they will try to limit the number of listing that they want on the market at any given time.
My guess is that the average time from NOD to REO and then to actually listing the house is over a year now. Mr. Mortgage claims that over 70% of all NOD’s will get to be REO’s. Taking 70% of NOD’s maybe a more accurate way to measure phantom inventory than what the lenders are actually listing at any given time.
