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Dawn of the Shadow Inventory!

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It’s not a B-reel Harry Potter movie, folks; it’s a phenomenon by which the number of Notices of Default filed in August in the U.S. has spiked dramatically-- an overall increase of 116% --to the highest level in a year. An August 2011 ForeclosureRadar report shows that the Notices of Default (NOD) or Notices of Trustee Sale(TS) rose in nearly every state, with California’s NODs jumping 69.5% and TSs jumping 6.06% over the previous month. Alameda County Realtor Pacita Dimacali localizes the issue: “In my neck of the woods, the jump is even more dramatic”: NODs in Alameda County climbed to 71.97% over the previous month, while TS numbers grew 7.78% .“Just as we were seeing a slowing down of NODs and TSs, we are now rudely awakened by the drastic upward spike. We can assume that many loans are re-setting, and the property owners are unable to meet the higher mortgage payments. But [so many] in one month?”
· Dawn of the shadow inventory: a significant upswing in Notices of Default filed in California [Active Rain]
· ForeclosureRadar [website]