Notice of Default (NOD)
“The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default”.
“Auction (NTS, NFS):
If the loan is not reinstated by the end of the pre-foreclosure period, potential buyers can bid on the property at a public auction. Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property beforehand; however, a public auction often offers some of the best bargains and avoids the unpredictability of dealing directly with the borrower/owner.”
“Bank-owned (REO):
If the lender takes ownership of the property, either through an agreement with the owner during pre-foreclosure or at the public auction, the lender will usually want to re-sell the property to recover the unpaid loan amount. The lender will then typically clear the title and perform needed maintenance and repair; however, the potential bargain for these REO homes is typically less than a pre-foreclosure or auction property. Bank foreclosures can become government foreclosures if the loan is backed by a government agency such as the Department of Housing and Urban Development (HUD) or the Department of Veterans Affairs (VA). In that case the government agency would be responsible for selling the property.”
Timeline of Stages:
Pre-Lien – 30 days
Lien – 30 days
Notice of Default – 90 days
Notice of Sale – 21-25 days
Trustee’s Sale – if unsold to REO
__________________________________________________________
If I am understanding my chart and RealtyTrac’s data, the NODs are ever changing as new people go into default and others get their property out of default as SD explains — but the numbers are still really high and keep climbing.
The Auction properties are properties where there is an auction date set and the date/time/location is published for the auction/sale.
The Bank Owned (REO) properties are the properties that actually went to auction and was not purchased by the homeowner or any other buyer/investor.
All of these numbers fluctuate and I can guess why they do, but I’m not an expert in it. I suspect that the NOD numbers change as people go into default and get their property out of default. The Auctions figure is about the same as the NODs. The bank owned fluctuates due to pieces actually being sold at auction or somehow the bank does something to get it off their books ???
