[peterb]

Well, if in fact the loss is not recognized financially, until the house is actually sold by the lender….then that’s probably got a lot to do with the lag in REO’s getting listed. If the lender is facing a possible collapse of their business if all the REO’s were to hit the market too quickly, then it stands to reason that they will try to parse them out over as long a period of time as possible. At least this way they get a shot at surviving sometime into the future. In other words, this is a survival tactic.

And if this is the prime reason for them waiting to list or foreclose, then contacting them directly to buy a house probably wont sway them to sell it to you.

[peterb]

Well, if in fact the loss is not recognized financially, until the house is actually sold by the lender….then that’s probably got a lot to do with the lag in REO’s getting listed. If the lender is facing a possible collapse of their business if all the REO’s were to hit the market too quickly, then it stands to reason that they will try to parse them out over as long a period of time as possible. At least this way they get a shot at surviving sometime into the future. In other words, this is a survival tactic.

And if this is the prime reason for them waiting to list or foreclose, then contacting them directly to buy a house probably wont sway them to sell it to you.

[peterb]

Well, if in fact the loss is not recognized financially, until the house is actually sold by the lender….then that’s probably got a lot to do with the lag in REO’s getting listed. If the lender is facing a possible collapse of their business if all the REO’s were to hit the market too quickly, then it stands to reason that they will try to parse them out over as long a period of time as possible. At least this way they get a shot at surviving sometime into the future. In other words, this is a survival tactic.

And if this is the prime reason for them waiting to list or foreclose, then contacting them directly to buy a house probably wont sway them to sell it to you.

[peterb]

Well, if in fact the loss is not recognized financially, until the house is actually sold by the lender….then that’s probably got a lot to do with the lag in REO’s getting listed. If the lender is facing a possible collapse of their business if all the REO’s were to hit the market too quickly, then it stands to reason that they will try to parse them out over as long a period of time as possible. At least this way they get a shot at surviving sometime into the future. In other words, this is a survival tactic.

And if this is the prime reason for them waiting to list or foreclose, then contacting them directly to buy a house probably wont sway them to sell it to you.

[peterb]

Well, if in fact the loss is not recognized financially, until the house is actually sold by the lender….then that’s probably got a lot to do with the lag in REO’s getting listed. If the lender is facing a possible collapse of their business if all the REO’s were to hit the market too quickly, then it stands to reason that they will try to parse them out over as long a period of time as possible. At least this way they get a shot at surviving sometime into the future. In other words, this is a survival tactic.

And if this is the prime reason for them waiting to list or foreclose, then contacting them directly to buy a house probably wont sway them to sell it to you.

[peterb]

If the lenders are truely “swamped” and that’s the main reason that REO’s are not getting listed quickly, then maybe a more accurate way to calculate the “shadow inventory” that’s out there is to take Mr. Mortgage’s guess that roughly 80% of all NOD’s will not get cured and thus end up as REO’s…given that these properties are probably upside down and wont sell on the court house steps. I guess many could also go into a short sale during the foreclosure process as well, but he may be including that as being “cured”.
If NOD’s must be recorded, at least it’s a starting point with some measure of accuracy. But, I guess the lender could also delay sending out an NOD as well.

[peterb]

If the lenders are truely “swamped” and that’s the main reason that REO’s are not getting listed quickly, then maybe a more accurate way to calculate the “shadow inventory” that’s out there is to take Mr. Mortgage’s guess that roughly 80% of all NOD’s will not get cured and thus end up as REO’s…given that these properties are probably upside down and wont sell on the court house steps. I guess many could also go into a short sale during the foreclosure process as well, but he may be including that as being “cured”.
If NOD’s must be recorded, at least it’s a starting point with some measure of accuracy. But, I guess the lender could also delay sending out an NOD as well.

[peterb]

If the lenders are truely “swamped” and that’s the main reason that REO’s are not getting listed quickly, then maybe a more accurate way to calculate the “shadow inventory” that’s out there is to take Mr. Mortgage’s guess that roughly 80% of all NOD’s will not get cured and thus end up as REO’s…given that these properties are probably upside down and wont sell on the court house steps. I guess many could also go into a short sale during the foreclosure process as well, but he may be including that as being “cured”.
If NOD’s must be recorded, at least it’s a starting point with some measure of accuracy. But, I guess the lender could also delay sending out an NOD as well.

[peterb]

If the lenders are truely “swamped” and that’s the main reason that REO’s are not getting listed quickly, then maybe a more accurate way to calculate the “shadow inventory” that’s out there is to take Mr. Mortgage’s guess that roughly 80% of all NOD’s will not get cured and thus end up as REO’s…given that these properties are probably upside down and wont sell on the court house steps. I guess many could also go into a short sale during the foreclosure process as well, but he may be including that as being “cured”.
If NOD’s must be recorded, at least it’s a starting point with some measure of accuracy. But, I guess the lender could also delay sending out an NOD as well.

[peterb]

If the lenders are truely “swamped” and that’s the main reason that REO’s are not getting listed quickly, then maybe a more accurate way to calculate the “shadow inventory” that’s out there is to take Mr. Mortgage’s guess that roughly 80% of all NOD’s will not get cured and thus end up as REO’s…given that these properties are probably upside down and wont sell on the court house steps. I guess many could also go into a short sale during the foreclosure process as well, but he may be including that as being “cured”.
If NOD’s must be recorded, at least it’s a starting point with some measure of accuracy. But, I guess the lender could also delay sending out an NOD as well.

[peterb]

Does anyone out there know about the legally required time a lender has to complete forclosure processes after an NOD has been sent? Or is there any time limit? It seems like NOD’s are comming in big numbers, but REO’s are seriously lagging. I’ve heard rumors that lenders are letting mortgage’s go more than a year in arrears in order to avoid putting the property on to their books. Is there any GAAP rules here? Or can a lender have a non-performing loan on the books indefinately?

[peterb]

Does anyone out there know about the legally required time a lender has to complete forclosure processes after an NOD has been sent? Or is there any time limit? It seems like NOD’s are comming in big numbers, but REO’s are seriously lagging. I’ve heard rumors that lenders are letting mortgage’s go more than a year in arrears in order to avoid putting the property on to their books. Is there any GAAP rules here? Or can a lender have a non-performing loan on the books indefinately?

[peterb]

Does anyone out there know about the legally required time a lender has to complete forclosure processes after an NOD has been sent? Or is there any time limit? It seems like NOD’s are comming in big numbers, but REO’s are seriously lagging. I’ve heard rumors that lenders are letting mortgage’s go more than a year in arrears in order to avoid putting the property on to their books. Is there any GAAP rules here? Or can a lender have a non-performing loan on the books indefinately?

[peterb]

Does anyone out there know about the legally required time a lender has to complete forclosure processes after an NOD has been sent? Or is there any time limit? It seems like NOD’s are comming in big numbers, but REO’s are seriously lagging. I’ve heard rumors that lenders are letting mortgage’s go more than a year in arrears in order to avoid putting the property on to their books. Is there any GAAP rules here? Or can a lender have a non-performing loan on the books indefinately?

[peterb]

Does anyone out there know about the legally required time a lender has to complete forclosure processes after an NOD has been sent? Or is there any time limit? It seems like NOD’s are comming in big numbers, but REO’s are seriously lagging. I’ve heard rumors that lenders are letting mortgage’s go more than a year in arrears in order to avoid putting the property on to their books. Is there any GAAP rules here? Or can a lender have a non-performing loan on the books indefinately?

[Author]

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