After reaching reaching the lowest level in a year last month, Notice of Default filings increased almost 20% in February. The number of properties scheduled for sale remain at record highs, yet foreclosure sales dropped and the disconnect between delinquencies and foreclosure sales continues to widen.
Sean,
Question. What I am starting to see are houses that were supposed to be foreclosed upon–which are being fixed up and then listed later on. Right before the listing, the house magically appears in public records as sold.
Do you see this happening?
Effectively, it looks like a trustee sale happens, but the bank doesn’t record the deed until right before listing–which may be months after the trustee sale. Any idea why or the benefit of the delay? Tax purposes? Liability purposes? I assume that the bank is offering cash for keys to the buyer rather than going through the eviction process (whereby they would need to record the deed). Maybe my records are incorrect, but it sure looks like the day a public deed is recorded is coming months after the trustee sale (leading me to the conclusion that there are actually more bank owned homes out there than public records reveal).
Last year looked into investing in foreclosed properties but wasn’t succesful. Appreciate your thoughts on investing in them.