There's a good reason why the REO flow is at a trickle right now; however, look to the end of summer for noticeably more REO supply.
Lenders/Banks put the brakes on foreclosures during the later part of 2008 due to Federal, State and self-established moratoriums. Then came the announcement of the Presidentâ€™s housing recovery plan. As soon as banks/loan servicers heard a plan was in the works they had additional reason to throttle back on the foreclosure process. That all ended in March after the plans) were announced in late February 09 - there wasn't much for the Banks/servicers to be excited about. Since then, Banks/servicers shifted their Notice-of-Default and Notice-of-Trustee Sale machines into overdrive. The foreclosure process takes about 3 months, 3 weeks and 3 days (starting with the NOD). So look for a healthy spike in supply around the end of this summer. This is the so called "REO Shadow Inventory" you may have heard of.
http://docs.Steven-Anthony.com/REO-ShadowInventory.pdf (Article on backlog)
As Dunes, pointed out below, this Monday (6/15/09) CA added a new 90-day moratorium on home foreclosures in California. Personally, I think this is more political posturing than effectual in stopping the foreclosure process. Here's the key: Lenders and loan servicers that already have a comprehensive and systematic loan modification program in place are EXEMPT FROM THE LAW. Now take a look at who is exempt: (some of the largest in the Nation):
So, just how effective is this new law? Not very much in my opinion.
Note: This new law does not change separate legislation that requires lenders to wait 30 days before filing a notice of foreclosure after first making initial contact with a borrower who has missed several mortgage payments.
As you plan your purchase you need to be watching interest rates closely. Please refer to the link below for a prior post I made on this subject.
If you are intersted in list of foreclosures of possible upcoming ones you best bet is to work with a realtor who has time to work for you.
Realtor/MBA/REO, foreclosure specialist
First Team Real Estate
This is a post I put up yesterday, showing what is going on in my market area. Hearing from other agents it seems to be the same.
For some stats, see:
Make sure you know what a Notice of Default (NOD) and Notice of Trustee Sale is when looking at the charts. Google those phrases if need be.
The one's that aren't happening! It might explain why you've seen less and less but does not suggest a turnaround rather an attempt to start one.
Due to all the opportunities being offered to home owners in mortgage distress, such as loan modifications, stream linning,etc., we are seeing a turn around in less and less foreclosures. Now is the time to buy especially with all the opportunities being offered to buyers such as, tax credits, low interest rates, terrific mortgage programs, etc. If you are in a position to buy I would not hesitate to do so. I would be happy to assist you with your real estate needs. You can email me at firstname.lastname@example.org. or you can reach me on my cell 732-330-8903. If you need any further assistance please do not hesitate to contact me. Thank you.
Coldwell Banker Flanagan Realty