Permanent Foreclosure


#1

I just read Sean’s great article from last year (Foreclosure roulette) and was wondering if there is any statistic concerning houses that are in foreclosure but are always postponed and therefore not included in the “time to foreclose” statistic (about 1 year). This market seems quite large but not really tracked. I am interested in a LA County house that has been in foreclosure for 16 months and postponed every month and would be interested in knowing how long such a house could stay in limbo. 2 years, 3 years? Thanks. peterg


#2

Actually, the house’s next auction will occur almost 12 months after NTS, and 15 months after NOD. If there is no auction, then another NTS would have to be filed. I would like to see a histogram of the foreclosure inventory per number of months. Thanks. Peter


#3

For homes with multiple NTSs our “Time to Foreclose” statistic DOES include the time across all of those NTSs as we use the prior NOD record date as the start date, and NODs are typically not refiled due to postponement. Our stat would not include periods of time where the borrower was on a permanent modification and an NOD was later refiled. Hope that helps. Be sure to check out all of our foreclosure stats here: http://www.foreclosureradar.com/california


#4

The definition on your chart is: “Time to Foreclose?The average number of days between the filing of the Notice of Default and the final sale at auction for foreclosure sales that occurred during the specified month.”
It seems to me that this statistic only includes properties that have been through auction, not the ones that are listed on the Foreclosure Inventories chart (which tracks the number of properties, but not the number of months in foreclosure since NOD).


#5

Correct… those are the only ones on which it is possible to tell the “Time to Foreclose” as the others are not yet foreclosed. Others have looked at the average total time in foreclosure… it doesn’t vary that much. Certainly there are some properties that have been postponing far longer… but on “average” those that are postponing don’t have significantly different stats.