Recordings of notice of defaults (NOD’s) on trust deed loans in January 2010 rose 9.5% on a daily avearge basis from December 2009, according to Foreclosure Radar.
The increase in the number of NOD’s recorded in January 2010 is up more than 16% from January 2009. However, real estate owned (REO) properties are down more than 33% January over January, indicating banks are taking longer to complete the foreclosure process. REO’s once placed on the market, continue to sell rapidly.
The good news is that brokers with REO properties to sell are seeing them go quickly. The buyers are ready to pounce after the dip of the past two years, especially under a million dollars whree affordability is the best it has been in California in 12 years.
Unfortunately, such listings are scarce despite the number of defaults. Lenders continue to play the delay game to benefit their bottom line as they do not report the market value of their loan portfolio of toxic mortgages until the REO is resold. Unless this changes, look for more of the same kinds of numbers next month.