Preforeclosures---How many actually get to sale?

[Bruce Lynn]

Anyone have % of how many preforeclosures actually go to foreclosure?

What % get sold before foreclosure?

What is the average time from first NOD to actual foreclosure?

Saw one recently that looks like it had been posted every month for about 10 years.....guessing maybe they missed a payment way back when?

Saw hard money loan lenders today that looks like they had posted every month for about 2 years.

[Minna Reid]

These are all very state specific as everyone's foreclosure process is different. Timelines can vary from months to years. 

I would say from helping people in foreclosure and watching pre- fc lists and fc lists for 15 years, I would say less than 5% of "preforeclosures" actually foreclose. NOD to FC is higher but I would still say less than 25%.

These are very anecdotal estimates.

[John Slater]

@Bruce Lynn

In Riverside County, California, very few go all the way to auction sale. Many get postponed till a later date so it’s not easy to track.

The fact is in a market where most homeowners have equity they are much more likely to sell versus letting it go to auction, but around 7-10% of properties listed at auction on a given day here will sell that day, the remainder being postponed, and when they sell at auction, They sell for 60-75% of the property value.

[Jay Hinrichs]

Quote from @Minna Reid:

These are all very state specific as everyone's foreclosure process is different. Timelines can vary from months to years. 

I would say from helping people in foreclosure and watching pre- fc lists and fc lists for 15 years, I would say less than 5% of "preforeclosures" actually foreclose. NOD to FC is higher but I would still say less than 25%.

These are very anecdotal estimates.

Agreed in all my years doing this 5% is probably a good number in bad times maybe 10% .. Banks/servicers are much more accommodating in doing work outs than in years past.. 08 to 2011 taught them that a decent work out is far better than going to sale.

[John Slater]

I just took a quick look at my local county for the last two months, and was shocked by Novembers numbers.

numbers for December.

206 properties were posted for Auction

6 became REO's

16 Sold to a 3rd party at the auction

58 were cancelled completely

126 postponed till the following month

Total of 22 properties were either sold at auction or foreclosed on, 10.6%

Numbers for November

198 properties posted for auction

31 became bank owned (WOW!!!)

26 Sold to 3rd Party at the auction

69 Cancelled completely

72 Postponed

Total of 57 properties were either sold at auction or foreclosed on, 28% !!!

[Marty Boardman]

Foreclosures are very state/county specific so difficult to estimate any of these statistics Bruce. To get this type of granular data would require diving into foreclosure notices, tax assessor websites, etc where you live.

For example, I buy foreclosures in Arizona and Wisconsin. Arizona is a non-judicial state so the process is dictated by state statute. Once the lender files the notice of trustee's sale the borrower has just 90 days to bring their loan current or pay it off. Wisconsin is a judicial state, so there are numerous court hearings that can drag out the process 2-3 years or more.

When you see a foreclosure re-posted every month it's most likely because the borrower is in a loan modification or loan forbearance agreement with the lender. As long as the borrower is making their payments the sale gets postponed in 30-day increments. The lender won't cancel the foreclosure proceedings until the loan is brought fully current. This saves them the time/hassle of re-starting the entire process over again if the borrower misses a payment.