There were 2,228 NODs and 911 NOTs delivered last month. The latter is an all-time high; the former is second only to August’s NOD count. Here is a long-term look at the number of monthly NODs and NOTs, adjusted for labor force growth (as a proxy for population growth, though labor force has actually grown faster than population):
Here’s a different look at the foreclosure stats, using weekly data I get from a friend (the graph is current up to the end of October). The timelines are shifted to show NOTs and REOs in the pipeline.
And using that same weekly data, here are the number of REOs as a percent of the number of NOTs 16 weeks prior, as a rough approximation of how many NOTs are ending up as foreclosed homes for sale on the open market. Since 16 weeks represents the minimum delay, and many homes stay in default for longer than the minimum, this graph likely understates the actual percentage of NODs that will become REOs at some point.
Due to legal minimum delays between the stages of foreclosure, an October NOD won’t hit the market as an REO, assuming it turns into one, until about March 2008 at the earliest. Given the number of NODs of late and the rate at which they are turning into REOs, we can expect a serious increase in the supply of must-sell inventory in early 2008.
November 14, 2007 @ 11:34 AM
Yikes. Spring 2008 is
Yikes. Spring 2008 is looking tough for anyone who’s holding off until then to sell.
Can the banks sit on that REO inventory, or are they forced to sell? If forced to sell, how long do they have to get it off their books?
January 21, 2011 @ 2:34 PM
All the rules have changed in
All the rules have changed in the last couple of months. Lending banks are now being held accountable for the trap they set, borrowing money they didn’t themselves have, while using loose and illegal practices in the process. The massive lawsuit against Wells Fargo / Wachovia, Indymac / OneWest bank, Citibank, Bank of America, JP Morgan Chase, GMAC…………..can actually, not only put a stop to your foreclosure, but also pause your house payments with no loss to you…………