Foreclosure sales have increased substantially, yet Notices have shrunk almost a third.
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In your opinion, will the increase in sales equate to more inventory on the market?? Is the bottle neck more from postponing the sale, or from lots of REO inventory not getting listed for sale?..i.e. does increase in sales = increase in active REO agent listings?
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At some point do you anticipate it loosening up, or the way new legislation is going, they can keeping holding this pent up demand?..thnx, Kurtis
Hi Kurtis - With the increases in foreclosure sales we should certainly see an increase in REO listings. Remember that it can take a few months to work through the eviction of the homeowner and get the property cleaned up.
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We have a record number of properties scheduled for foreclosure sale right now, so I don’t think drop in Notices of Trustee Sale this month will matter much. Some think we may have so many active sales postponing right now because the new Home Affordable loan mod plan requires a 3 month trial before the mod is completed, and we believe the bank leaves the homeowner in foreclosure until the trial is finished. If this is the case, and people actually stick with the loan mods then we should see a significant increase in cancellations the next couple of months. In that case foreclosure sales are likely to stay reasonably low and we aren’t likely to see much inventory relief.