Las Vegas foreclosure rate continues to plunge

Bloomberg News

A foreclosed home is shown in the Silverado neighborhood of Las Vegas.

Las Vegas foreclosure levels kept sliding last quarter amid a national drop in distressed real estate.

The Las Vegas Valley had the 25th highest foreclosure rate in the third quarter among the 212 U.S. metro areas with at least 200,000 people, according to a report out today from Irvine, Calif.-based RealtyTrac.

One in every 139 housing units was in foreclosure in Las Vegas in the three months ending Sept. 30, down 31 percent from the second quarter and about 71.5 percent from last year’s third quarter. Stockton, Calif., was the worst-hit in the country in the third quarter this year with 1 in 67 homes in foreclosure.

A year ago in Las Vegas, 1 in every 39 homes was in foreclosure. This gave the valley the highest foreclosure rate among the 25 hardest-hit U.S. metro areas with at least 200,000 people.

The plunging foreclosure rate has been attributed to Nevada’s year-old “robo-signing law,” which requires banks to provide more paperwork before foreclosing on homes.

Nationally, 1 in every 248 homes was in foreclosure in the third quarter this year, down 13 percent from a year ago, says RealtyTrac.

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  1. "So the foreclosures are just being artificially delays due to robo-signing/paperwork backlog? For all we know, we could still have the highest rate of foreclosures that are in process in the country."

    mbcarl -- that and our Supreme Court giving us good decision like Pasillas, Leyva and Edelstein. Unfortunately the local courts still turn up their noses at them. This fact shows the systemic rot isn't just the banks and their evil minions, it's more like banks & bar & bench.

    "If you're going to take my house away from me, you better own the note." -- Joe Lents (who hasn't made a payment on his $1.5 million mortgage since 2002) in Bloomberg's 2/22/08 "Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish"

  2. bobog has correct about how people have been squating for years, and those same people also stop paying HOA fees, so many owe 3-4 years but the law says when the bank foreclose it only has to pay 9 months. HOA's are in trouble, most have a large portion of their budget not being paid. In FL the HOA can make the renter pay the HOA instead of the landlord, this is not true here in NV. The robo law has really screwed HOA's by delaying the foreclosures.