I know I'm answering this question really late, but I wanted to give some feedback as an agent working in Davis. Yes there does appear to be more homes in Davis receiving notice of defaults but the number that goes to foreclosure still remains relatively low. Short sale may be a viable option but there are not as many home owners in Davis who bought at the peak of the market who have gotten themselves into financial difficulty. The relative shortage of inventory in Davis also keeps home prices high because there tends to be more demand for homes here than what typically is for sale at any one time. It is a good problem if you already own a house in Davis but can be frustrating for buyers.

In a short sale a buyer submits an offer to the seller who then sends the offer (or offers) to their lender for approval. The short sale seller still considers and accepts or rejects the offer but does not have the ability to complete the sale without their lender approving the sale because the lender is going to be accepting less money than what they are owed.

I have a page dedicated to foreclosure listings in Davis and another that shows only short sales. These pages have stats data that is updated once a month that tracks just foreclosure or short sale activity.

The NOD listing is the first public record of nonpayment. It signals the commencement of the legal foreclosure process. All during this time the homeowners still have options. They can either try for a loan mod if they have income and or want to stay in the house or they can do a short sale.

You may not see many foreclosures on the market right now but that does not mean that banks don't have foreclosed inventory. They often have their own internal reasons for choosing a certain time to market them.