Default notices are an early indicator, but most never become REO. Loss mitigation, reinstatement, refinance, and sales before the trustee sale absorb a large share. Supply that reaches the REO stage tends to include more occupied and deferred maintenance assets, which lengthens disposition time.
For asset managers, the lesson is operational. Budgets for relocation assistance, rekeying, and repair bids matter more than headline counts. We recommend tracking time from assignment to vacancy as a core metric alongside days on market.