Distressed Inventory Report 10-30-10
Well it looks like the foreclsoures are starting again after a lull. As you have read in the news the major lenders stopped processing foreclosures due to documentation difficulties. In the last weeks we were seeing the notices of trustee sales declining and overall it appeared distressed inventory was selling off and being reduced. However this week there is a big jump in the number of homes that have gone NTS (notice of trustee sale). The difficult part to reconcile though is the jump in numbers for the homes going NTS is not matching up with the previous weeks. As an example in the 98004 zip code the number of homes going NTS went from 29 to 60 in one week but it only showed 3 new notices of trustee sales being filed. There could be a couple of reasons for this, the first is that some notices may have been refiled to insure they complied with state law. This would mean some of the servicers processing foreclosure s are trying to clean up their act. The other is that there might have been a large project such as a condo project where the lender was foreclosing on individual units owned by one developer. I will look at the actual NTS filings a little more and see if I can get this figured out. However in the next coup0le of weeks let’s see if these new NTS being filed is clearing out a back log or if we are on an upward spike in new foreclosures.
The spreadsheet is here: Bellevue Foreclosure Report 10-30-10