Saturday, 19 September 2009 01:00

The ARE trying to kick the bad mortgages down the road, here's proof!

There have been a lot of theories and anecdotal evidence indicating that banks are letting defaulted mortgage borrowers stay in their houses in lieu of taking possession of said properties and recording the writedown on thier books, particularly once the property is sold at auction. The auction sale will actually set a hard market price for the property that cannot be fudged, and will reveal the amount of losses on said banks books from the (most likely severely underwater) mortgage.

Well, there is strong statistical evidence in Nevada (nearly 15,000 samples) that indicate that banks are postponing sales at auction, presumably to avoid the event mentioned above. Click the graphic below if you need it enlarged.

trustee_sales_report_august_2009.jpg

Hmmm! 3% of the homes have been sold to 3rd party's (usually the majority of sales go here),17% returned (sold) to the bank, 18% cancelled (this happens when the delinquency is cured in some fashion prior to the auction) - but the albatross here is that the vast majority have been postponed. I am not referring to a few dozen sales, we are talking nearly 50,000.

As you may know, Nevada is on of the big foreclose and default states - along side California and Florida. Click here (pdf nevada_august_trustee_report 19/09/2009,11:01 192.72 Kb) to download the source from this graphic with plenty of information to fill in the blanks.

Last modified on Saturday, 19 September 2009 01:00