2011 another awful year for foreclosures in Nevada and Las Vegas

The grim reality of real estate in Southern Nevada.

Year-end statistics for 2011 show Nevada and Las Vegas maintained their dubious No. 1 spots on the lists of states and cities hit hardest by home foreclosures.

RealtyTrac of Irvine, Calif., which tracks foreclosures, reported Wednesday that during 2011, more than 6 percent — one in 16 — of Nevada housing units received at least one foreclosure filing. That amounted to 72,844 properties with filings last year.

2011 was the fifth consecutive year Nevada has led the nation in foreclosures. The state’s housing market was hard hit by the recession, which brought soaring unemployment (now 13 percent) and falling home prices.

The state topped the 2011 foreclosure list despite a 31 percent decline in foreclosure activity from 2010.

That drop is largely attributed to new legislation requiring banks to provide extra documentation in foreclosure paperwork. This caused what analysts say was only a temporary slowdown in foreclosure activity in the fourth quarter.

Arizona, another state dealing with the aftermath of a boom/bust housing cycle, for the third consecutive year ended up with the nation’s second-highest foreclosure rate. In 2011, one in 24 housing units in Arizona was the subject of a foreclosure filing.

California was ranked No. 3 followed by Georgia, Utah, Michigan, Florida, Illinois, Colorado and Idaho.

In the ranking of metro areas with populations of 200,000 or more, Las Vegas finished No. 1 in foreclosures with 7.38 percent of its housing units (one in 14) receiving a filing in 2011, RealtyTrac said.

Las Vegas had led the nation in foreclosure filings for 22 consecutive months until October, when it was ranked No. 5. Despite the lower ranking for the final three months of the year, the city finished first overall for the entire year.

The pain in Las Vegas is far from over, with analysts saying more than 100,000 homes have been foreclosed on locally during the recession since 2007 and another 100,000 foreclosures are likely during the current cycle.

Ten of the top 20 metro areas with elevated foreclosure rates in 2011 were in California, led by Stockton with one in 18 units receiving a filing.

Also high on the list were Phoenix and Reno.

The high foreclosure rates in Nevada and Las Vegas compare to RealtyTrac statistics nationwide showing 1.45 percent of U.S. housing units (one in 69) had at least one foreclosure filing during 2011.

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  1. "That drop is largely attributed to new legislation requiring banks to provide extra documentation in foreclosure paperwork. This caused what analysts say was only a temporary slowdown in foreclosure activity in the fourth quarter."

    Shocking. You mean banks have to legally prove that they are taking people's houses? They just can't "do it". Wow....what kind of socialist country are we living in....

    This housing mess will continue to make news for a few more years, get used to it.

  2. Meanwhile, the auto signature scandal winds down. A few flunkies get the boot and the big guys go to Aruba with their bonuses. This is the direct result of Government fostered disaster started in Congress and sustained by the present and past two Presidents who signed bills they should have contested. Let's be Frank and note that some legislators got rich off the situation as did their significant others. Barney (not the dinosaur) and a few other DINO/RINO pols have a nice retirement partially funded by his "(open) secret friend's" actions while in charge of an agency that ripped the heart out of the US market. People lose houses and now speculators, buy up the houses for rentals, while protected by their political pals. Thus Destroying the common people chance to get in on cheap houses..

  3. "That drop is largely attributed to new legislation requiring banks to provide extra documentation in foreclosure paperwork. This caused what analysts say was only a temporary slowdown in foreclosure activity in the fourth quarter."

    Green -- you forgot to mention that "new legislation" made it a felony to make a false title representations. Check it out @ http://www.leg.state.nv.us/Session/76th2...

    AB 284 went into effect on July 1st last year, exactly one week before our Supreme Court issued its excellent opinions in the Pasillas and Leyva cases.

    "Meanwhile, the auto signature scandal winds down."

    Malous -- you mean ROBO signature. You're absolutely right about the flunkies getting the shaft here. Maybe our AG just isn't ready to take on the big boys, BofA excepted.

    "The issue is losing your home due to the downturn."

    Jackpot -- you almost got it right. The short sale is a last resort AFTER the "lender" proves it's the genuine Note Holder. In Nevada NRS 104.3501 is most useful for that.

    "The regulators got bailed out, the middle class lose their jobs and their houses. All this desire to trust in the government to make sure that big corporations won't hurt them actually is a backfire on them." -- Rep. Ron Paul to Jon Stewart 9/26/11, citing the example of the real estate crash as example of government regulation gone bad

  4. This is all speculation but (joke intended). I asked someone about the banks excusing the principle and it seems they make out well on taxes by claiming the principal loss as a tax deduction. He seemed to feel that they might not be able to claim the tax deduction if they voluntarily excused the debtor. Added to the "forced loss" deduction, they often then use another part of their corporate structure to buy the house back at auction at a reduced rate. They get a double windfall when they then re-sell it to a sweetheart investor who reaps large rewards when they sell it at an even larger price to speculators.