There has been a lot of talk about foreclosure inventory and speculation regarding how this "shadow inventory" of bank owned REO foreclosures will affect the market. Buyers like to believe that the banks will place all of their REO foreclosure inventory on the market at the same time forcing inventories down (not going to happen). Sellers would like to believe that the banks will allow them to stay in their homes indefinitely or reset their mortgages to current market values (also not going to happen). Here's some graphs and charts that tell the real story followed by some quick searches for bank owned foreclosure inventory in a number of Los Angeles Westside and South Bay neighborhoods and cities.
Foreclosure Inventories: Pre-foreclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property, but have not yet been Scheduled for Sale. The Scheduled for Sale inventory indicates those properties that have had a Notice of Trustee Sale filed, but have not yet been sold or had the sale canceled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to the Bank at the trustee sale, and which the bank has not yet resold to another party. These are what are commonly referred to as "foreclosures". What we are seiing is that bank owned REO inventory has gone up, fewer homes are entering foreclosure and fewer are scheduled for sale.
Foreclosure Bids: The Published Bid is the amount listed in the Notice of Trustee Sale and is typically the balance due at the original date of sale. The Opening Bid is the bank's starting bid at auction, and is often discounted from the Published Bid. The Winning Bid is the highest bid received at auction and reflects the amount at which the bank or 3rd party purchased the foreclosure. The opening bids have been ever so slightly less than the Published Bid. Often these are not the "great deals" everyone is looking for. That's why so many foreclosure properties are going back to the bank at about the same price.
Foreclosure Discounting: This chart compares the winning Bid Amount of properties sold at trustee sale to both the outstanding Loan Amount, and the current Market Value. Banks place an Opening Bid for each property and if a 3rd Party does not make a higher bid, the property will be sold Back to Bank (REO) for the Opening Bid amount. Properties Sold to 3rd Parties will typically have Winning Bids with deeper discounts to both Loan Amount and Market Value as only low Opening Bids will attract investor interest.
Westside REO Listings - Find Foreclosure Homes
Culver City REO Foreclosure Listings
Palms-Mar Vista REO Foreclosure Listings
Santa Monica REO Foreclosure Listings
Venice REO Foreclosure Listings
Marina Del Rey REO Foreclosure Listings
Playa Del Rey REO Foreclosure Listings
Playa Vista REO Foreclosure Listings
Westchester REO Foreclosure Listings
Beverly Hills REO Foreclosure Listings
Bel Air - Holmby Hills REO Foreclosure Listings
Hancock Park REO Foreclosure Listings
Westwood - Century City REO Foreclosure Listings
Pacific Palisades REO Foreclosure Listings
Malibu REO Foreclosure Listings
South Bay REO Listings - Find Foreclosure Homes
Manhattan Beach REO Foreclosure Listings
Hermosa Beach REO Foreclosure Listings
Redondo Beach REO Foreclosure Listings
El Segundo REO Foreclosure Listings
Rancho Palos Verdes REO Foreclosure Listings
Rolling Hills REO Foreclosure Listings
Rolling Hills Estates REO Foreclosure Listings
Torrance REO Foreclosure Listings
Lomita REO Foreclosure Listings
San Pedro REO Foreclosure Listings
Hawthorne REO Foreclosure Listings
Gardena REO Foreclosure Listings
Lawndale REO Foreclosure Listings
Inglewood REO Foreclosure Listings
Carson REO Foreclosure Listings
Foreclosure Inventories: Pre-foreclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property, but have not yet been Scheduled for Sale. The Scheduled for Sale inventory indicates those properties that have had a Notice of Trustee Sale filed, but have not yet been sold or had the sale canceled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to the Bank at the trustee sale, and which the bank has not yet resold to another party. These are what are commonly referred to as "foreclosures". What we are seiing is that bank owned REO inventory has gone up, fewer homes are entering foreclosure and fewer are scheduled for sale.
Foreclosure Bids: The Published Bid is the amount listed in the Notice of Trustee Sale and is typically the balance due at the original date of sale. The Opening Bid is the bank's starting bid at auction, and is often discounted from the Published Bid. The Winning Bid is the highest bid received at auction and reflects the amount at which the bank or 3rd party purchased the foreclosure. The opening bids have been ever so slightly less than the Published Bid. Often these are not the "great deals" everyone is looking for. That's why so many foreclosure properties are going back to the bank at about the same price.
Foreclosure Discounting: This chart compares the winning Bid Amount of properties sold at trustee sale to both the outstanding Loan Amount, and the current Market Value. Banks place an Opening Bid for each property and if a 3rd Party does not make a higher bid, the property will be sold Back to Bank (REO) for the Opening Bid amount. Properties Sold to 3rd Parties will typically have Winning Bids with deeper discounts to both Loan Amount and Market Value as only low Opening Bids will attract investor interest.
Westside REO Listings - Find Foreclosure Homes
Culver City REO Foreclosure Listings
Palms-Mar Vista REO Foreclosure Listings
Santa Monica REO Foreclosure Listings
Venice REO Foreclosure Listings
Marina Del Rey REO Foreclosure Listings
Playa Del Rey REO Foreclosure Listings
Playa Vista REO Foreclosure Listings
Westchester REO Foreclosure Listings
Beverly Hills REO Foreclosure Listings
Bel Air - Holmby Hills REO Foreclosure Listings
Hancock Park REO Foreclosure Listings
Westwood - Century City REO Foreclosure Listings
Pacific Palisades REO Foreclosure Listings
Malibu REO Foreclosure Listings
South Bay REO Listings - Find Foreclosure Homes
Manhattan Beach REO Foreclosure Listings
Hermosa Beach REO Foreclosure Listings
Redondo Beach REO Foreclosure Listings
El Segundo REO Foreclosure Listings
Rancho Palos Verdes REO Foreclosure Listings
Rolling Hills REO Foreclosure Listings
Rolling Hills Estates REO Foreclosure Listings
Torrance REO Foreclosure Listings
Lomita REO Foreclosure Listings
San Pedro REO Foreclosure Listings
Hawthorne REO Foreclosure Listings
Gardena REO Foreclosure Listings
Lawndale REO Foreclosure Listings
Inglewood REO Foreclosure Listings
Carson REO Foreclosure Listings
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