Wednesday, June 6, 2007

Downey REO Watch II

This chart of the DSL Real Estate Owned pipeline is based on a sample of Alameda, Contra Costa, Kern, San Diego, San Joaquin, Solano, and Orange counties conducted on June 6, 2007.

Those 7 counties are only a fraction of the counties where DSL makes loans - DSL has at least one REO in over 40 different counties. However, the 7 counties do account for 40% of the REOs listed on DSL's website.

Not all counties make this data easily available online (especially in California). Los Angeles does not provide online access, and many of the counties that do have extremely cumbersome interfaces.

A key rule is that it takes at least 90 days to go from a default notice to a notice of sale.

So, the April spike in sale notices and trustee's deeds probably came from borrowers that received notices of default prior to 2007. Judging by the graph, that would suggest that virtually all of the defaults from Q4 2006 went to trustee's sales.

I encourage everyone to help monitor this pipeline. Go to the county recorder or county clerk websites (1,2,3,etc.) and search for "Downey," as they have a number of different entity names.

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