Las Vegas Sun NewsNevada foreclosure rate is back on the rise, report says
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A “for sale” sign is displayed outside a foreclosed home near Hacienda Avenue and Jones Boulevard on Saturday, Feb. 5, 2011.
Wednesday
12 September 2012
9:01 p.m.
Nevada’s foreclosure rate inched higher last month, giving the state a one-notch boost in its ranking among America's worst-hit states.
Nevada was fifth-worst in the country in August for its volume of distressed real estate, with 1 in 402 homes in foreclosure, according to a report today from Irvine, Calif.-based research firm RealtyTrac. The state was No. 6 in July with 1 in 415 homes in foreclosure.
Illinois took the dubious No. 1 position last month with 1 in 298 housing units in foreclosure. It was followed by Florida (1 in 328), California (1 in 340) and Arizona (1 in 360), says RealtyTrac.
North Dakota ranked 50th last month, with 1 in 317,498 homes in foreclosure.
Nevada’s foreclosure rate rose 3.3 percent in August as compared with July, helped by a 40 percent increase in “foreclosure starts” — new notices of default or foreclosure sale notices.
Yet the overall foreclosure rate was 70 percent below August 2011’s figure.
This can be attributed in large part to the state’s “robo-signing” law, which has caused foreclosure sales to plummet.
Under the law, which took effect last October, banks can start foreclosure proceedings only after filing a signed affidavit that says the lender has firsthand knowledge of the mortgage documents.
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So...it seems Nevada is a ticking time bomb on the foreclosure front, only stymied by paper work.
This was a delay driven by the idea that "if you can't show me the note" then you can't foreclose. The money is owed, you're not paying...you lose the house. The quicker these foreclosures happen the better. The system can't heal until this is done.
I have seen it start happening and hopefully makes bigger news as this will be the one thing that will reduce the foreclosures the most. Some banks are starting to recourse for the balance of the loan after the house sells at a foreclosure auction.
There are still a # of homeowners who are walking away from their existing homes buying new homes and letting the loans go bad on the old. This is hurting neighborhoods and as the banks go for the difference these people will be rightfully punished and others will learn to live with what they have and not move or instead find renters until the market turns so they can properly sell their home.
Down 70 percent from last year and up 3 percent is still very good news. Don't expect to see many more bank sales, just more short sales. It is now organized, albeit not great.
Perhaps its a good thing that the bomb is defused by paperwork. On the other hand, its extremely frustrating trying to buy a short sale property.