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StumbleNevada foreclosure filings take another dive
Fri, Dec 18, 2009 (3 a.m.)
Sun Archives
- Foreclosures are top housing obstacle (1-23-2009)
- A year for foreclosures (1-12-2009)
- More homes becoming negative equity casualties (1-9-2009)
- Las Vegas home prices drop to August 2003 levels (12-23-2008)
- Street-level view of the foreclosure problem (12-17-2008)
- Gibbons asks lenders for 90-day freeze on foreclosures(12-11-2008)
- Audit critical of state’s regulation of mortgage companies(12-11-2008)
- Their dreams shattered, investors left to wonder (11-28-2008)
Sun Topics
Foreclosure filings plummeted in November in Nevada, but analysts are not sure 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 below October’s. That month’s filings were 26 percent below September’s.
November’s filings were 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,” RealtyTrac spokesman Daren Bloomquist said. “It was surprising to us. We didn’t expect to see this ... 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 filings. That program allows homeowners who receive 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 started this year might be gaining some traction. It gives lenders $1,000 for making loan modification so that only 31 percent of the homeowner’s monthly income goes toward repayment, Bloomquist said.
Some lenders are agreeing to more short sales to prevent the house from going into foreclosure, he said. A short sale allows the homeowner to sell the home for substantially less than he owes on the loan.
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.
Nevada held the top spot in the nation as it has since January 2007. It had one filing for every 119 households.
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.
Discussion: 18 comments so far…
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C'mon, wake up. The banks have pretty much STOPPED foreclosing at all, even before the holiday moritoriums. They don't want to foreclose, because:
1) They don't have the manpower to handle all of the cases. The banks are buried right now, because practically everyone is underwater. And now home-holders (I won't call them "homeowner") have figured out that the banks are going to let them live in the home for free indefinitely.
2) Banks don't want to have to take the loss on their books, because they're holding those loans (and the piggy-backs, and the HELOCS) on their books at 100 percent. They don't want to have to book a 50-percent loss, especially because the gov't looks like it's going to let them keep lying about their balance sheets (no "mark to market").
3) If banks foreclose, they are suddenly on the hook for the property taxes, HOA dues and upkeep of the house and property against blight. As long as they can leave that house in the owner's hands (or in the weird sort of limbo they're in now), the banks can say, "Taxes? That's not our responsibility."
There are 100 other reasons, but you get the idea. Also, don't let that clown fool you into thinking Vegas will bottom out first, therefore it will recover first. One actually has little to do with the other. And just because something hits so-called bottom doesn't mean it automatically starts a rocket shot upward. It can stay at the bottom indefinitely.
Spin it baby spin it!!!
At least one contributing reason for the drop in foreclosures is that the banks, through there own loss mitigation departments, are finally getting it and and modifying mortgages, even if that includes principle reductions. With products like 40 year, 3% fixed mortgages being made available with substantial principle reductions, many people will be able to retain their properties. Since home retention is being required in order to qualify, that will not only make mortgage payments affordable but it will keep Nevadans in Nevada. Considering that many of these "bad" loans were interest only or deferred interest, in many cases the banks have already booked profits so the principle reductions aren't a complete giveaway, yet from an accounting standpoint will be beneficial to them.
let's hope the trend of banks working to fix some of the problems they helped create continues
Maybe the banks are just running out of houses to foreclose on.
More on this @ http://www.kvbc.com/global/story.asp?s=1...
The banks are just playing with us, people -- we're just a herd to be fleeced. Until we wake up and hit them where it hurts -- forcing them to show their bona fides. Most of them can't prove they have the legal right to the properties they're foreclosing on!
Well said, judgesmales.
The reduction in foreclosures would only be good news if it was being driven by a reduction in the number of homeowners not paying their mortgages. When it is a result of banks piling up hidden inventory of foreclosures (which is clearly the case here), then its not good news. It just means this situation will drag out over a longer period of time.
hmmm - good luck with that - fewer people put on the street each day will lead to a longer period of homelessness as new people will be introduced to the street on a monthly basis but it will extend out more months. Maybe it will be good for the moribund rental industry? Yes, banks are in a variety of moratoriums and that appears to be the most likely factor here!
What a joke. My friend and her husband went to a "mediation" meeting because they hadn't paid their mortgage in a year. They wanted to move to a nicer house, and were simply "gaming" the system. Both had jobs, one a big Union construction type. So the mediation lawyer lady tells them that they don't qualify for help, that the lawyer lady IS IN DEFAULT ON HER MORTGAGE, TOO!
The point is that my friend simply walked away, went into BK, and all is fine. New house, big pool, etc. Didn't lose a dime. Pay $200 a month for old credit card bills. All you dopes who say that because Nevada is a recourse state, the bank will go after them are so 1972. They gamed the system and won. They beat the banks. "Wonnerful".
nightmare, it is not so clearly the case as you state. With Judge Dawson's recent ruling regarding the lack of MERS rights in foreclosure actions the banks are being forced to either spend a lot more time and money to foreclose or work with the borrower to find a workable solution. i think a delicate balance is being reached to keep homeowners in their homes rather than having to take the extra losses in both time and money to effect the foreclosure.
I was working on a mod case for about 9 months with a homeowner that was always on time, great credit,hovering around zero equity, but not upside down, and the lender was completely uncooperative. After not making a payment since september and receiving an NOD, we had basically given up. 2 days after Judge Dawson's ruling a week or two ago, we were contacted by the lender and negotiated an icredible deal with 35% principle reduction and a 2 % fixed note with one condition being short term home retention and not sale by the homeowner. I am aware of several other cases with similar actions being taken.
JustMe -- with MERS involved there was no possibility of a legal foreclosure without getting you to approve a new security instrument/deed of trust. Meantime did you ever get the lender to show you the note and prove they still had it? If not you were still cheated -- it's likely the "mod" you got was with a bank that couldn't prove it owned the loan you allowed modification!
Check it out @ http://www.webofdebt.com/articles/mers.p...
Also check out "WHY LOAN MODS DON'T WORK II: IN CERTAIN INSTANCES, THEY CANNOT," the latest on http://foreclosuredefensenationwide.com/...
with MERS involved forcloure its still possible, it just may take a long time and a lot of money to find someone that can legally assign the right to the lender now holding or servicing the loan. If it were truly impossible, 90% of nevada foreclosures wouldnt go through at all. That beingsaid, in order tostop even a MERS foreclosure you'll need an atorney, which means money, to file a suit. if people dont contest a MERS foreclosure, it will still go through. Most people arent educated enough, or don't have the $10,000 to stop it.
In Judge Dawson's ruling he stated at the very least, MERS would have to prove they were a legally authorized agent of the holder of the deed of trust, something that although tough, may not be imposssible to aquire. Another hurdle would be trying to get clear title to sell the property, even if it were a MERS deal
Thanks for the articles, going to read them now
JustMe -- no, you don't need an "atorney" to stop the foreclosure. Use NRS 104.3501 against them -- it's a private law you can use to change the rules of the game to your favor.
What "Judge Dawson's ruling"?
If you are like me, a pissed off homeowner, here is a great way to fight back....
OPEN AN ACCOUNT AT A CREDIT UNION AND TELL YOUR BANK TO "GO HIKE A VOLCANO"...
Let's see how many banks will survive the massive customer exodus...
I believe that if the media picked up on that happening and put it on the front lines, banks in order to save their own skins will quickly change their tune and we may finally get a desired respect.
Robin Hood -- how does switching your financial institution keep you in your home?
they're just waiting to foreclose to keep from crashing the market even further.
if they foreclosed on every home they COULD foreclose on, homes would be selling for $30,000.
I think they're just waiting things out as people are using the mediation system and clogging things up (as the homeowners should). 2010 through early 2011 are going to have continued high foreclosure rates as mortgages will adjust interest rates.
I live in Az, and FYI some homes are close to 30K in sales price. Matter of fact two homes in my neighborhood have sold for: 40K and 60k, home values where 200-250K at peak in 2006, in addition I noticed two other foreclosed homes which had been purchased and refurbed about a year to year & half ago are back into foreclosure. In addition I have not seen one home rent that has been foreclosed on and sold,there are about 10-12 homes in a two block area that are vacant. Also I have been in foreclosure, due to a family death and have been attempting to negotiate a workout for over a year, Every time I get close ether the lender or my personal bank screws things up. I can't tell if it is because most of the people I deal with have lack of experience in this or if it is intentional, only one or two people have had any working knowledge of the process and my workout officer has ether anger or personal issues. If I had not grown up in the realty and construction business and gone to collage for realty law I would have been out on the street months ago. My experience is that everything is smoke & mirrors and has given me the impression something else is happening that none of us fully know about.
I tried everything possible to modify my loan with my lender. They turned me down because they said they could make more money from the foreclosure. So don't tell me that they don't want my house and would rather keep me in it. I was unemployed for a few months, but I am back to work now and I can afford my house. I am just behind on payments. They don't seem to want to work with me. I know 3 other people who have the same lender as me who are trying to get modifications and they have also been denied. So yes, the banks do want to take your homes. They are still foreclosing on homes left and right.
tell the banks to go F*** them self take you money to a credit union