I've done some digging in the Naples Real Estate Market to try to find out what is really going on with Short Sales & REO's as it relates to the following questions.
- Is there another wave coming through & if so when and how small or big will it be?
- How many seller's are still in trouble or behind on their mortgage payment?
Here's what I found at the end of all the digging. First to clarify the process, an LP (Lis Pendens) is filled once your 3 mortgage payments behind then later an FJ (Final Judgment) which states when the bank is going to sell at public auction or become an REO which then a CT (Certificate of Title) will be issued. Now based on that info here's the numbers behind the questions I have.
Here's the number of Certificate of Titles issued in each year.
- 2006 had 87 CT
- 2007 had 677 CT
- 2008 had 2,388 CT
- 2009 has 2,613 CT not including this month
Now here's the Lis Pendens that have been filed in each year.
- 2006 had 1,246 LP
- 2007 had 4,078 LP
- 2008 had 8,793 LP
- 2009 has 8,540 LP not including this month
Here's what it all means, the pre-foreclosure process on average takes 18 months to foreclose and some up to 24 months so that means 2006 and 2007 LP's most likely became REO's in 2008 & 2009 based on the CT numbers. So that first wave that came through for the most part was only 2006 & 2007 LP's. So in 2010 we'll see most of 2008 LP's become REO's and 2011 will be 2009 LP's.
So get prepared now because there's another wave coming, either get on or get out of the way the next years are going to be whatever you make it. Goodluck & stay positive, hmmm... now where did i leave my surfboard at...