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StumbleForeclosures drop sharply for second straight month
Bloomberg News
A foreclosed home is shown in the Silverado neighborhood of Las Vegas, which leads the nation in foreclosures.
Wednesday, Dec. 9, 2009 | 9 p.m.
Sun Coverage
Foreclosures filings plummeted in November in Las Vegas and the rest of Nevada, but analysts are unsure if this marks a trend.
California-based RealtyTrac reported that foreclosure filings in Nevada dropped by double digits for the second consecutive month. The 9,295 filings in November were 33 percent fewer than October, in which filings were 26 percent below September.
November’s filings were also 33 percent below November 2008.
“It has been pretty amazing what we have been seeing in Nevada and Las Vegas in terms of the last two months,” said RealtyTrac spokesman Daren Bloomquist. “It was surprising to us. We didn’t expect to see this trend to continue because so many forces are driving foreclosures. It is still up in the air if this is a temporary reprieve or if it has truly turned. We are going to be watching it closely in the next two months.”
Bloomquist said it appears the new state mediation program implemented July 1 is affecting the number of filings. That program allows homeowners who get a default notice to request a mediation session with the lender to rework the mortgage. Those monitoring the program said lenders are reducing principal and interest rates to keep people in their homes.
In addition, Bloomquist said, a federal loan modification implemented earlier this year may be gaining some traction. It gives lenders $1,000 for making loan modification to 31 percent of the homeowner’s monthly income, Bloomquist said.
Some lenders are also agreeing to more short sales to prevent houses from going to foreclosure, he said. A short sale allows the homeowner to sell the home for substantially less than they owe on it.
Despite the drop in foreclosures, Bloomquist said, concerns remain that more homeowners are vulnerable to losing their homes because of the 13 percent jobless rate in Nevada.
If foreclosures continue to drop, that would be healthy for the housing market by allowing inventory to be gobbled up and prices to stabilize, he said.
“It does seem like a possibility because the city was hit so hard and prices have fallen so much, Las Vegas may be poised to hit the bottom quicker and recover quicker than the rest of the country,” Bloomquist said.
That perception, however, differs from some national analysts who maintain foreclosures will continue to be problem in Las Vegas into 2010 and housing prices should continue to decline because of it.
Nevada holds the top spot in the nation for foreclosures, as it has since January 2007. It had one filing for every 119 households. Florida was second with one filing for every 165 households.
Among cities, Las Vegas fell from the No. 1 spot it had held for four consecutive months and been at or near for much of the year.
Las Vegas fell to No. 5 in November with one filing for every 102 households. The city’s filings fell 33 percent in November but were still four times the national average.
“This is good news for Las Vegas, but even if the trend continues it still has a long way to go before the city is out of the woods in terms of its foreclosure problem,” Bloomquist said.
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"Bloomquist said it appears the new state mediation program implemented July 1 is affecting the number of filings".
What a joke. I have a friend who went through the mediation program. The mediator, a lawyer, told her that the whole thing was a waste of time. In fact, the mediator has HER home going through foreclosure, and said there was nothing she could do. This program simply delays the inevitable-BK. My friend is buying a new home through the process, giving away the old underwater dump to the bank, and buying a new one with a big pool, etc.
All you "you'll be sued for the difference" freaks are Neanderthal dopes. Please post your stupid comments, ignorance is bliss....
He's one of the richest men in America and yet Bloomquist has the gall to tell us we have to mediate to keep our homes. Why doesn't he just buy them from us? Better yet, just stick to being Mayor of New York and keep your nose out of our business here in Vegas.
Foreclosures, home values , and commercial real estate failures will continue to be a major problem here because there are no jobs to be had! Harry Reid is too busy trying to push through a BS health care bill that no one in their right mind want anything to do with it. SO HARRY REID, IF YOUR LISTENING WE WANT JOBS!! YOU BETTER DO SOMETHING ABOUT THIS PROBLEM, OR ELSE YOU WILL BE THE NEXT ON THE UNEMPLOYMENT LIST!!
bdover,
Your friend sounds like a real loser; I suggest that you get some higher quality friends. Also, don't turn your back on him because he will probably steal from you just like he stole from the bank and his fellow citizens.
the eye of the storm all is calm... not for long though..
bob1234,
Ummm, I think you mean Bloomberg, not Bloomquist. Yes, Bloomberg is one of the richest men, but no, I don't see him writing anything about Las Vegas. Bloomquist on the other hand, as a spokesman, probably living paycheck to paycheck like most of us are.
I question the word "improvement". Is it an improvement just because the numbers are lower than last month or the month before? Over 9,000 filings in November is A LOT, and to think that that's 33% less than Octobers' filings! The numbers are dropping because this has been going on for 2 years and there ARE NO MORE HOUSES TO FORECLOSE. So, thank you Bloomquist for your positive outlook, but let's be realistic....It's a numbers game.
Great point environ! Reid and Obama have no idea what to do so they are completely ignoring the real problems and going after something that makes no sense. Where's all the change we were promised? We have rising unemployment with no end in sight is that the change he was talking about?
bdover -- what do you mean by "This program simply delays the inevitable-BK"? BK = bankruptcy?
The mediator's point is a good one. I know some people who went through it in mid-November. Although the "lender's" own paperwork showed it was not the one on the note, the mediating attorney and that "lender's" clueless attorney hired at the last minute just ganged up on the homeowners to sell them on "we're just trying to help you" and doing a loan mod. Total joke.
azbycx0918 -- bdover's "friend" is a her, not a him. And do please enlighten us on how that friend "stole from the bank and his fellow citizens." Otherwise you just showed us what an irrelevant buffoon you really are.
Gordon,
spending those funds wouldn't help the economy much. We don't need another housing bubble to fix a problem created by a housing bubble.
KillerB,
Here is the quote from bdover "My friend is buying a new home through the process, giving away the old underwater dump to the bank, and buying a new one with a big pool, etc."
Clearly his friend is walking away from her responsibilities on one home and buying a better and less-expensive home. She's using the system to better her own situation at the expense of banks, investors, and other property owners whose home values decline with every foreclosure.
If this is the type of behavior that you condone then you too are a loser.
I live a Nevada and can state affirmatively that Sen. Reid's actions on the Health Care Bill have greatly frightened Nevada homeowners. Reid's Health Care bill will Force annual Health Insurance Costs on Nevadans equal to what many pay in Income Taxes; that will cause more mortgage defaults in Nevada, the State with the highest number of home foreclosures. The annual expense of Forced health insurance will further lower Nevada home values by disqualify millions of homebuyer mortgage applicants needed to support home selling prices and values. Sen. Reid's proposed Health insurance costs will make it impossible for many Nevadans to pay their rent and other bills. Homeowners that can't afford health insurance or opt-out penalties, IRS can file liens destroying their credit; Nevada families deemed not poor by Government for subsidized insurance, may have to sell their home or borrow money to buy health insurance or pay Opt-Out penalties with money needed for medical expenses. Falling home values in Nevada continue to lower collected property taxes, forcing local governments to lay off government employees and ask federal agencies for money; further increasing federal deficits.
"She's using the system to better her own situation at the expense of banks, investors, and other property owners whose home values decline with every foreclosure.
azbycx0918 -- your ignorance is underwhelming. These "banks, investors" are predators who are rarely able to prove they have any legal right to the properties they're foreclosing on. When they lose the notes they also lose all rights to receive payments. Courts all across the country are waking up to this. In just the last three months one court in Massachusetts retroactively voided all foreclosures by U.S. Bank and Wells Fargo back to 1989. Two courts in New York City actually voided mortgages. All based on the same grounds -- those banks failed to prove they had any legal rights to the properties.
Since you are childish enough to resort to name calling, you are irrelevant to this Discussion. Expect to be disrespected and ignored.
KillerB,
First of all, you called me an ignorant baffoon before I called you a loser, so who is the irrelevant child in this discussion? Maybe I should disrespect and ignore you.
Second, I don't care whether the banks have possession of the notes or not, there is no way that they are going to lose the right to collect what is owed to them. Do you really think that individual homeowners and their lawyers are going to win against the likes of Goldman Sachs and Bank of America? You cannot be that naive.
Third, you still haven't explained why you feel it is justifiable for a person to default on a debt while simultaneously purchasing a home elsewhere. Don't you think that it is unfair that only those people with negative equity get to push their losses onto someone else? What about the people who paid cash for their home, only to see its value drop by 50%? Who is going to reimburse them for their losses? You don't care about those people, you just want to screw the big, bad banks. If everyone took your advice to only look after themselves then this would be a pretty terrible place to live. I hope you are not my neighbor.
Lotsa good info today on the comments section of these articles.
So far I have learned that
Las Vegas is going to dry up and blow away
I'm stupid for going to the casinos and [gaming?]
I am/was a moron for buying a house for 182,000 [for cash] that sold for 425,000 2 yrs. ago
Hairy Reid is either an idiot or a genius for his stand on the gvmt. health care issue
And suffern Sam has some 1st round N.I.T. Rebel basketball tickets for sale
I guess that I'm lucky that I'm so stupid onaccounta if I wasn't I would be all worried like you mensa's are!
Lenders should rightfully require borrowers to makeup the difference (between note and current home worth) in lost collateral resulting from market devaluation -- much in the same manner as a margin call from an equity's broker.
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azbycx0918 -- "irrelevant buffoon" isn't name calling, it's an apt description. Your own posts show you only try to come off as knowing something about this subject when you actually know nothing.
My last point and then I'm finished with you on this Discussion -- look at any note (your own, if you have one), first page, the very first section "1. BORROWER'S PROMISE TO PAY." 99% of this controversy begins and ends in the language below it -- ONLY THE NOTE HOLDER is entitled to receive payment.
QUESTION?
Our society defacto method of business is to privatize profits and socialize losses.
What would be the proper business method for handling a mortgage under water?
The answer would appear to be ________________.
(You fill in the blank)
Please...don't EVER say short sale to a banker....it's like saying @#%$^^%#@##@....and I'm not kidding.
KillerB,
I've figured it out now. You are a lawyer who is trying to con homeowners into hiring you to represent them in court in their efforts to avoid their financial responsibilities. It makes perfect sense now. It certainly explains your devious techniques.
Now, I am done talking to YOU.
Harley, no offense here, but how is a home owner responsible for the value of his home based on the Market? To make up the difference? I just had my house forclosed on at LLV where I put 60% down so I could live there the rest of my life. I didnt walk away - did everyhting I could to keep the hopuse, but when you lost your income, no loan modification wil lwork regardless...LLV is in BK..dropping the value even more from what the market is doing. AM I responisble for that? Nope..had not been for a job loss (No, I am not in construction or a casino worker) we wuold still be living there because it was OUR home, OUR Savings. We weren't flippers or bought more than we could afford. We put alot down so if anything DID happen, we could afford it. No one in America could see the unemployment to be where it is now.
Retiredyoungster -- You can't lose anything that was never yours.
Perhaps you'll have better luck paying your obligations as promised in the future because of the experience?
BTW: No offense.
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Retiredyoungster --
Final note:
The reality is that even if you possess the title to "your" property you never really "own" it -- you will become informed of this unfortunate reality of fact if you should happen to stop paying upon the life long bill of "rent" in the form of property taxes -- which amongst other things pays for other's to enjoy "free" lunches upon your tab.
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azbycx0918 -- for the record, you've "figured out" nothing. Nothing in your post is true but your screen name.
If I didn't misunderstand my realtor he said that in a short sale the difference between the note due and the selling price is considered income to the seller.So the owner is still liable for this amount as it is a write off for the bank. Anyone out there correct me or verify.
Harley
Guess you haven't been reading retiredyoungster's posts. He LOST his job, a-hole!! He did everything right, but when you lose your source of income - you are screwed!! Unemployment is not enough to make mortgage payments, pay utilities, buy groceries, pay health insurance, etc. You have to pick and choose. NO ONE could have predicted any of this would have happened to the extent it did. Good people lost everything, including their homes, after doing everything right.
Until YOU yourself experience what thousands of Las Vegans are experiencing - losing jobs, homes, etc. - please do not be condescending to those who are in this awful mess. You ought to Thank God you are NOT in that position or else you would be singing a different tune.
Det_Munch -- Well stated! We all need to be more positive and try to find solutions to our problems. I see so many negative, critical posts, with no possible solutions or ideas from the posters, anyone can do that...and is wasting their time. Look out for your neighbors, make a positive difference, donate time and funds to local charities--take positive action!
My family members have taken action, some large, many small, but are making a difference and so can ALL of you!
9300 new foreclosures in one month!
A little math please. There are about 2 million residents in the valley. Lots of apartments, so the residential home/condo total must be less than one half million units. 9300 in one month times twelve months equals 101,600 units or twenty percent of all units, and that's only this years total, so if we add in last years how many can the total be of homes in foreclosure.
This mess is huge. There are a lot of foreclosed homes that have yet to be put on the market.
Underwater homeowners are going to be faced with the prospect of losing money on the home even after they have lived there a long time.
Up until very recently the home was seen as an appreciating asset that would be sold in retirement and the gain after a downsizing would become part of the retirement nest egg. Having lost that expectation will have huge ripple effects probably not yet fully understood.
Retiredyoungster -- claimed he did everything he could to keep the house -- everything of course except what was necessary -- an expense life-lesson?
Perhaps a deserving lesson when one considers that LLV homes were selling at least 200-400% above neighboring per-square-foot market prices not to mention the higher association fees and added costs attached to an "exclusive" LLV community.
Additionally, one shouldn't confuse losing a job with being "retired" youngster nor owning anything which was never paid for.
"It's not whether you get knocked down, it's whether you get up." -- Vince Lombardi
"Once you learn to quit, it becomes a habit." -- Vince Lombardi
"Show me a good loser, and I'll show you a loser." -- Vince Lombardi
"Some of us will do our jobs well and some will not, but we will be judged by only one thing-the result." -- Vince Lombardi
"The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will." -- Vince Lombardi
"The greatest accomplishment is not in never falling, but in rising again after you fall." -- Vince Lombardi
"The measure of who we are is what we do with what we have." -- Vince Lombardi
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The false assumption that the real estate market is getting better is because CASH buyers are snatching up houses in the down market for investments. Vegas economy is in the crapper, make no mistake.
AngryR -- your childish remark aside, you continue to disregard the obvious solution, apparently because it doesn't come from an institution. Guess what -- it's the institutions that got us into this mess and they're not about to get us out of it, at least not as long as we can still be fleeced.
Remain obtuse to the solution, your choice.
Good comment about the procedure being unpleasantly medical.
Dont get too excited -Las Vegas is in the eye of the storm right now
www.vegasbubble.com
Does anyone have any idea how often banks go after foreclosed homeonwers for "deficiency judgements"? What is the likelihood that if I am foreclosed on the bank will come after me for the difference between what I owe on the mortgage and what the house actually sells for?