Redfin Now Showing 700% More Foreclosed Homes

Last night, we flipped the switch on a different data source that gives us a more complete picture of the number of foreclosed homes that are not yet listed for sale. This is a part of what a lot of people refer to as the shadow inventory — homes that have been foreclosed upon by the banks, but not yet processed and put back on the market. These are foreclosed homes that are still waiting in the wings.

The change we made yesterday increased our coverage of these pre-listed foreclosed homes from under 10,000 properties to more than 80,000. This change also provides a more complete picture of each individual home. For instance, we now show the auction price and date for many foreclosed homes — these are the results of failed auctions that have already taken place.

Why is this change good? Since these foreclosed homes will probably be listed in the near future, you can add any of them to your Favorites list, and sign up to receive email alerts whenever any of them come onto the market. And we already show you any foreclosed homes that are listed by an MLS, so you’ll know exactly when these homes become available for purchase.

If you want to search for foreclosed homes, click on More Options under the search box at the top of the page, and check Foreclosed Homes from the lower left column. Foreclosed homes will show up as purple icons on the search results map. If you don’t want these foreclosed homes to show up in your searches, just make sure that option is unchecked, as it is by default.

We also plan to analyze all of this information to help us better understand market as a whole, and we’ll share what we learn with you.

But what we didn’t plan to do was flood everyone with a big purple tidal wave of foreclosed homes. We should have filtered these homes so that they didn’t show up as “brand new” listings, which would have prevented them from overloading your listing alerts. We’ve heard from a few of you about this issue, and we’re fixing it so that it won’t happen again.

If you have any questions or comments, feel free to post them at the bottom of this page, or email us directly.

Discussion

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  • http://twitter.com/venks venks

    Can't see a single home matching forclosure in San Diego ?

    • Professor Bear

      You don't expect the REIC to suddenly put all the shadow inventory into plain view, do you? Just wait until Phoney Mae and Frauddie Mac finally get dismantled; that is when the shadow inventory may suddenly reveal its breadth and depth in the millions. Or maybe Uncle Sam will play extend-and-pretend forever; who can say?

  • The_Tim

    Hi venks,

    I see 708 results right now when I search San Diego for only foreclosed homes. Here's the search: http://www.redfin.com/search#!… It sounds like maybe you're not checking the right box or you have some other requirement set in your search that is filtering out all the results.

  • RobK

    I just search for homes and condos with foreclosed checked. The price range was from $500k to unlimited and saw no homes. I was using the default zoom level

    • The_Tim

      As Marino mentioned below, setting any price range will exclude the foreclosed homes, since they have no price. You'll need to leave the price settings at “no min” and “no max” to view foreclosed homes.

      • RobK

        I did see that. Perhaps on click off the foreclosures radio option, set the price range to what it needs to be with a message to the user. Of course, there should be some way to filter the results. Can you pull a Zestimate from Zillow and filter based on that? I suppose we can self filter based on neighborhood for now. Great feature overall.

  • Marino

    Seems like for foreclosed homes to appear the price range needs to be set to “no min” “no max”.

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  • Bluemoon

    Frankly, I appreciated the info. It helped me select a few to watch. Can't imagine why anyone would have a problem with that…thank you for this site! It's hugely helpful, in addition to my realtor- generated MLS list. Highlights WHAT the change is (active to pending, prie reduced and by how much…etc) .

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  • Professor Bear

    “The change we made yesterday increased our coverage of these pre-listed foreclosed homes from under 10,000 properties to more than 80,000.”

    How do you guys count 'shadow inventory'? The numbers I have been seeing suggest there are maybe 5+ million U.S. mortgages in default, and that it will take years for these to go into foreclosure and come back on the market. I count these as shadow inventory, which makes your 80K number look quite minuscule by comparison.

  • DwnTwnAtty

    Prof. Bear – Agreed. The “Shadow Inventory” broadly defined includes properties in many different conditions of distress (e.g. borrower no longer paying but no NOD recorded; NOD recorded; auction scheduled; no sale at auction/bank owned etc.). The Redfin post describes the new tool as showing “foreclosed homes not yet listed for sale” which even in its broadest description would only be a small portion of the shadow inventory as it is discussed today.

    The sales history of the homes I looked at using the new tool all show as the last listing event a “sale” for the previous mortgage balance and foreclosure, I’m thinking that these are homes that either have been scheduled for auction, or more likely did not sell at auction and are now owned by the bank/lender. If so, who knows when the banks will decide to relist. I also doubt that this is the complete set of such property in any event.

    It would be helpful and fair if Redfin offered a slightly more detailed explanation of what the “foreclosed home” data is actually showing.

    If it is the latter (and I think it is the more likely scenario), these homes might not get listed anytime soon.

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  • http://www.facebook.com/profile.php?id=1426113122 Mark Benz

    When the foreclosed table appears at the bottom, what does DAYS mean in this context? Days since it was foreclosed or?
    THanks, Great feature.

  • Katey

    No Redfin in our area which is too bad because it feels like a lot of information is kept close to the vest in this area.

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  • http://courtauctionrealestate.com/learning-center/fort-myers-foreclosures/ Fort Myers foreclosures

    Well, what can I say? Good thing you flipped! Now you have additional informational for foreclosures. What I like about it is that you shared it with us and that is much appreciated. Thank you!

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  • http://www.DailyTrap.com/ Matt

    I noticed that a buyer is listed when you click on the property, but reading the article above it looks like these houses were not purchased, could you plese help me understand what this information means? Does this mean someone purchased the property and I should expect to see it for sale with a higher marked up value or was there not really a buyer and I will more than likely see the house be listed with an agent below the auction value?
    Auction Date: Tuesday, August 2, 2011

    Auction Price: $306,043

    Buyer: PNMAC MORTGAGE OPPORTUNITY FUN

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