[quote=jpinpb]Okay. I just went through my weekly NOD and foreclosure search. I have noticed that a lot of properties that in January had NODs but were not listed (and still not) are scheduled for foreclosure. This surprised me. But it’s in line w/3 months. So maybe – just maybe, the banks will actually foreclose and we will see them listed soon thereafter.
If this is going to be true, then look out for the February and March NODs. It may be one heck of a summer. [/quote]
I think, considering how averse the banks are to actually repo’ing the properties, it might be a better metric to examine the NOTs rather than the NODs and evaluate the percentage of NOTs to listed REOs.
Its not that the NODs are wrong, just that more than half the NODs I see get filed these days never turn into NOTs or only turn into them after 12-18 months. Often if a homeowner is reworking a loan or negotiating with the bank for a DIL, they will not list it (because they have not interest in selling it). During this time, the bank will often file the NOD as they process whatever sort of change in contract.
I would venture to say that about half of the NODs in, say, 92103 will never get to NOT or REO stage.
The owners want to stay there and the bank wants to continue to collect payment (even at a reduced rate) from them. Such contract modifications are often in the best interest (except, perhaps, bargain hunters and realtors).
