A huge spike in Countrywide foreclosures? No.

Commenter "gman" wrote, "Something that's been missed by this blog, possibly due to the fires, is this astonishing accidential posting of 196,000 (up from 13,000 the day before) REOs/forclosures for sale on the Countrywide website yesterday.  The list was up for a day and a half (I think) and then quickly taken down. Is it possible that Countrywide has 196,000 of these and they've just been holding back?"

We did see this -- and we noted that it was "accidental" -- that is, a mistake, by Countrywide. Here's the backstory: The Countrywide Foreclosure blog, which tracks real estate owned by Countrywide -- or REOs -- reported yesterday that Countrywide's own tally rose, shockingly, from 13,000 to 195,000 homes.

We called Countrywide PR Tuesday to ask about this, and after a few hours, we recevied an e-mail that said, "There was a technical glitch. I'm trying to get you the accurate number but it probably won't happen until tomorrow."

Today Countrywide corrected the "technical glitch," and the new tally is this: 13,674 REOs for sale.

To answer gman's question ("Is it possible that Countrywide has 196,000 of these and they've just been holding back?"), we think that is highly unlikely, and we take Countrywide at its word on this one: a technical glitch.

Your thoughts? Comments? Insights? E-mail story tips to lalandblog@yahoo.com.
Photo Credit: EPA via Los Angeles Times.

Comments

[Ben Brown]

Bush is spending $2 billion a week in Iraq. He could buy those 14,000 houses for $2 billion. He could commute the sentences of 14,000 Calfornia prisoners and have them join the Army infantry where they get a wage and a house for a 4 year enlistment. You will recall the terrific job Cal. inmates are doing on the SoCal fires.; there is no reason these inmates can't make good foot soldiers. At the very least, they would off-set the troop draw-down.

[MattJ]

That answers almost nothing; I'm sure it is a technical glitch, too, but the real question is what is that list of 190,000 houses a list of? Some speculation at Calculated Risk include that it is a list of homes in the foreclosure process but not yet REOs, or that it is a list of all REO houses that Countrywide services. Whatever it is, it sure would be nice to learn what that larger list contains and how it ended up in their list of Countrywide REOs.

[Jonah]

Suuure, a technical glitch! The only glitch that they had was that it was mistakenly posted on their website.

[Pete Viles]

MattJ wrote, " I'm sure it is a technical glitch, too, but the real question is what is that list of 190,000 houses a list of? Some speculation at Calculated Risk include that it is a list of homes in the foreclosure process but not yet REOs, or that it is a list of all REO houses that Countrywide services. Whatever it is, it sure would be nice to learn what that larger list contains and how it ended up in their list of Countrywide REOs."

Matt -- excellent questions all. I forwarded your comment to a PR rep at Countrywide, asking for an explanation, although I am not hopeful to receive one -- I had already asked for a breakdown of REOs divided into two groups: those for which Countrywide originated the loan, and those for which Countrywide is the servicer -- and they told me they don't release that breakdown.

[Pete Viles]

Here's a Countrywide PR staffer's email response to MattJ's comment/question:

"There was an omission in the logic that didn't filter out any properties so it was including all historical REO properties in the database. This has been rectified and new logic has been added."

[Steve Reynolds]

HMMMMMM a company that uses the "we don't release that breakdown" in the midst of a meltdown. I know I have heard that before let's see where was it, oh yea I know ENRON or was it TYCO. Someone's going to jail, can you say "perp walk" or "Can I bunk with Kozlowski?". Pete, tell the PR person they are personally under investigation by the LA Times, see if that helps get some info.

[gman]

I don't know, though, it strains credulity to think that all that data was a technical glitch. How does a glitch create the correct addresses of homes that bloggers went to look at and found many empty and apparently neglected? A glitch, perhaps, in that those are future or former REO's, or REO's they wanted to keep secret for accounting reasons. Or, to avoid giving the sense of desperation in sales negotiations. We need more answers about what those listings did have in common to be accidentally placed on the list.

[joeinlosangeles]

Steve Reynolds says: I don't know, though, it strains credulity to think that all that data was a technical glitch. How does a glitch create the correct addresses of homes that bloggers went to look at and found many empty and apparently neglected?

If you can Countrywide at their word, 14,000 of the homes are currently REO and 180,000 were previously REO. So there were plenty of current REO houses to look at. Countrywide's explanation seems reasonable.

[ace]

when we look back at the 195,000 number a year from now ..I think that number will drawf the actual number of REO's ...Time will tell. We are only in the 2nd innings....

[Cal]

Anyone ever running SQL statements on large batches of data knows how easy it is to mess up one part of the WHERE clause and get results you weren't expecting.

[TechatCFC]

I think we found some error in the coding:

If
{trying to deceive public = yes;
Then
{display 13,674;
If
{showing actual homes in REO/foreclosure = yes;
Then
{display 190,000;
Or
{Send Memo to Mozilo to sell more stock;

Glad we fixed the error!

[Keith]

All the cloak and dagger, jeez, it was probably the kid in India thinking about how many rupees it was going to cost him to take a date to dinner and a movie that night.

[MDR]

Two very importan questions still remain to be answered;

1) How the latest RE Bubble begun?
2) Who are the truly responsible masterminds behind the latest, well engineered RE bubble?

Don’t just blame Countrywide because they made money placing cheep money in the hands of gullible US consmer... RE bubble did not just happen by itself, it was planed and executed in the following manner:

Between 2002-2006 Countrywide, Commercial banks and tons of other mortgage brokers were practically swamped with 'cheep money' FED infused into the markets (from sell of US BONDS to mostly Communist China). By doing that, FED practically did two things which, as a consequence, transferred lower middle class savings into pockets of the higher and higher middle class pockets.

These two things were 1) artificial reduction of interest rates in 2002 and 2) dramatic increase of money supply in circulation, which was thereafter channeled down to Joe, Gina, Jose and Jane The Naïve who being well suckered by media into believing that since everyone is buying real estate, bought as well with mere zero down but remember, now the property tax goverment colects is much HIGHER and the sucker has no choice then to pay it, utill he wakes up, realize it was suckered up and drop the 'hot potato'.

Well, here we go, after making tons of money on Countrywide stock during past 5 years, The Wall Street is getting ready to let Countrywide go down the river like they did with Enron, WorldCom , Tayco and more. Based on the significantly higher values of the RE, government is now collecting higher taxes out of which MAJORITY goes on payment of the interest on now $9Trillion national debt while across the spectrum The American Society of Civil Engineers rates our infrastructure mostly D-F, which is worst then any other G8 country, and according to The U.S. Government Accountability Office’s (GAO) the financial situation of the USA is CRITICAL! Gao.gov web site info serves as great reality check. Visit to familiarize yourself and do remember, it’s still what you can do for your country not the other way around! The Roman Republic fell for many reasons, but three reasons are worth remembering: declining moral values and political civility at home, an overconfident and overextended military in foreign lands, and fiscal irresponsibility by the central government. Sound familiar?

[Politically incorrect]

Keith - ILMAO. Good one, Buddy!!!

[Jason Hoppe]

The Roman Republic fell for many reasons, but three reasons are worth remembering: declining moral values and political civility at home, an overconfident and overextended military in foreign lands, and fiscal irresponsibility by the central government. Sound familiar?

ISN'T THIS THE TRUTH!