NODs and REOs continue rising
According to PropertyRadar, formerly ForeclosureRadar, which tracks notice of default (NOD) and Real Estate Owned (REO) data nationwide, the numbers are showing a steady rise in new defaults and REO inventory compared to a year ago. In California alone, NODs rose 15.3% and REOs over 4% just over the month of October! And the trend is finding it\’s way throughout the country. The fact is, there aren\’t enough jobs, or credit available to help the 10+ million homeowners who are currently underwater and having trouble making payments. California alone has over 1.5 million underwater homeowners at risk of default.
To put things into perspective, the state that faired the best this year, was Oregon, and their foreclosures dropped by only 2.5% in October, and this is the best performing state. Banks have also lost confidence and are seeing that the temporary spike in housing values has ended, and now it\’s time to start selling off more of their REO inventory they\’ve been holding onto.