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StumbleNevada tops mortgage, credit card delinquency list
Thursday, Aug. 26, 2010 | 9:51 a.m.
Sun Coverage
With Nevada's July unemployment rate leading the nation at 14.3 percent, the state is also on top of new lists covering mortgage and credit card delinquencies in the second quarter.
TransUnion, a Chicago-based national credit reporting service, on Wednesday said 1.5 percent of credit card borrowers in Nevada were delinquent on payments, well above the national rate of 0.92 percent.
The delinquency rate is the ratio of bankcard borrowers 90 days or more delinquent on one or more of their credit cards.
Despite leading the nation, that rate fell in Nevada from 1.79 percent in the first quarter and was down from 2.19 percent in 2009's second quarter. Still, TransUnion expects Nevada's rate to drift upward to 1.6 percent by the end of the year.
Analysts at TransUnion said the national delinquency rate fell 17.1 percent from the first quarter and was down 21.3 percent on a year-over-year basis as consumers saved more and borrowed less; and as banks and other card issuers issued fewer new cards.
As for home-loan delinquencies, TransUnion said they've been moving downward nationwide and in Nevada, with Nevada still leading the nation as unemployed and underwater homeowners continue to move into default and toward foreclosure at high rates.
Nevada has been hard hit by the national recession that has deterred visitation to casino resorts, as well as by marked declines in construction as multibillion-dollar hotel-casino projects in Las Vegas were halted.
The national mortgage delinquency rate in the second quarter was 6.67 percent, down from 6.77 percent in the first quarter but up from 5.81 percent in 2009's second quarter. These statistics are for borrowers two months or more behind in payments.
In Nevada, the rate moved from 13.8 percent in 2009's second quarter to 15.98 percent in the first quarter to 15.86 percent in the second quarter.
"The second quarter decline in mortgage delinquency gives further credence to the notion that the credit market is stabilizing. Although this is good news for the consumer, the economy is still burdened by high unemployment, upcoming ARM (adjustable-rate mortgage) resets and a glut of foreclosures," FJ Guarrera, vice president in TransUnion's financial services business unit, said in a statement.
"The dynamics inside the mortgage market are changing. It is ironic that, with record-setting low interest rates, a large inventory of homes and low home prices, this is one of the most affordable times to buy a house within the last 50 years -- yet most consumers are not considering a home purchase the investment opportunity it was considered in the past. Add to that irony and concurrent with these near-perfect consumer buying conditions, tighter lending standards and increased documentation scrutiny have made it difficult for many consumers to qualify for a mortgage."
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A special shout out to harry Reid. Following Pelosi and Obama on this path to fundamentally transform America has really helped in Las Vegas. What a bunch.
I just do not understand this math.
15.86% of all mortgages here are MORE than two months behind on the payments. What about all the repo's already done? Does that mean that if 10% (I make this number up, it could be far higher or lower) of homes are already repo'ed or short sold, that 1 in 4 people in Nevada could not make their payments?
Can the paper do some research and write a real story explaining how bad this situation really is instead of just cutting and pasting stories from press releases and news wires?
Get 'em, max .em drop 'em...
Scummy thing to do...walking away from your obligations. Just from a personal responsibility standpoint I don't know how people can live with themselves with the moniker "deadbeat" attached to their name. It would bother the hell out of me.
I'm sure there are many that got into a situation that got out of control before they could rectify it....but a lot pulled equity out of their homes to spend. Bad idea from the get go. Sell your home, reap the monies and spend whatever you want. Until then don't pull "paper" money from your home (unrealized).
ARM's should probably be outlawed.. Same with subprime.
A lot of this is personal responsibility. Everyone wants to blame someone but themselves for their predicament. Your foreclosure and your credit card delinquency is YOUR responsibility.
Seriously, if Harry Reid really cared about Nevada, he has a hard time showing it. He's basically the boss of the Senate, and us, as his home state, number 1 in unemployment. . Proof is in the pudding folks, do you really think he cares about us? Time for someone new.
I see that our other senator (remember him?) doesn't seem to be doing much to help us these days. Of course, other than fundraising for his defense.....
Agree with you about the personal responsibility, TomD1228, though I don't really have a problem with ARM's. I got one, I read and understood the terms, and it worked out fine for me. The bank underwriters were obviously too loose when offering the loans, but that SHOULD HAVE been their problem and they should have dealt with the consequences, instead of the fed coming in and bailing them out. The borrowers should have read and understood the risks, too. The bank reps look out for the banks, the borrower needs to do the same for themselves.
Everyone wants to be a victim, but there's no guarantee that your house will appreciate in value. Same risk with any investment. The only real victims are the taxpayers that had to bail out the banks and the homeowners that are keeping up with their obligations while deadbeats walk away. That doesn't give anyone the right to continue the deadbeat cycle, though.
I hate to wish anything bad on people, but I hope there's a severe consequence for both the banks and the deadbeats when all of this is over.
nevada is a pathetic joke. corruption, high crime, crap schools, no jobs, an outdated good ole boy network of morons, a crappy police department (metro), tons of illegals, english as a second language and an ecomomy as diverse as a white supremest group.
If you are relying on a politician to pull Nevada out of this predicament...it will never happen. Nevada/Las Vegas needs JOBS, JOBS, JOBS. Harry Reid doesn't create jobs. No senator does. If a job is created thru stimulus all it is is throwing taxpayer money at a "created" job. Most likely this job can't stand on it's own. It's just a funded job. It will not last. You need an environment where small and large businesses can hire people to perform jobs that are self sustaining...in a sense this job makes more than it pays. It's at the heart of capitalism. Supply and demand. I laugh at Harry Reids radio ads about Sharon Angle not in the business of creating jobs. I'm no supporter of either one but she is right...she is not a creator of jobs. All a politico can do is create an environment for job growth...not the actual job.
Lets start out with some real facts. When you see numbers like 15% for second quarter that means just for the second quarter. That is not a cumulative total. About 6 months ago there were figures out that said that over 60% of the houses in Las Vegas were underwater. So, that is really what you have to take into consideration. That number has grown and will continue to grow as long as the unemployment rate stays high. Yes and you can blame all of your legislators for what is going on. This whole housing problem was created by the government and until we realize that and do something about the people in Washington it will keep happening. We have to keep voting people out of office that don't do what best for us regardless of what party they may be affiliated with. At this point they are all bad and need to be removed. They are like a cancer on the American people.
TomD
You are so correct. Personal responsability. People that bought homes that they couldn't afford, purchased with an arm, and then blames someone else is a true looser. Other than a serious medical condition, loss of a spouse would I understand. If you can't purchase a home, where if you lost your job, you could still work for 10-12 dollars an hour and still maintaine a simple lifestyle, it's your fault. Bought a 350,000 dollar home, put minimum down, your not very smart. Purchase a home, with enough down, you can still afford to live in and not get foreclosed on. Wonder how many pulled out (fake) equity and blew the cash? I bet a lot
Two yrs. ago I posted an idea that would have solved the mortgage crisis in a manner that would have been fair to everyone who had a stake in it!
Last yr. I reposted it and the response to both was drowned out by the sound of crickets chirping!
So once again I will .. Oh what the hell why bother!
That's the issue Anthony. Medical hardship and some other issues (death in family, loss of job) I can understand. The problem is most people got in over their heads, bought too big and too expensive and had no idea how an ARM works. It isn't rocket science. Simple fundamental math should tell you what you can afford. Pulling out equity was the WORST thing a lot of people did. It is UNREALIZED money. Once they went underwater, the incentive was gone to hold on. Personally I would have a hard time accepting the dead beat moniker from a conscience point of view. I think a lot of people in default rationalize that it was someone elses fault for their predicament and this is how they can live conscience free.
Tea Party amnesia...Stupid people don't remember history!!
Harry Reid was here when Las Vegas was the fastest growing city in the nation, and had the lowest unemployment rate!!
The Republicans caused all of the bed economic problems the nation faces today. Its going to take years to fix, and voting in Sharon (CRAZY) Angle..Is a vote for the soup line.. At least the Dems are trying..can't say that for the Tea Party Republicans...JUST SCREAM NO,NO,NO!! Like a little 2 year old baby!!!
I'm shocked that this would be happening in NV. After all we have the most powerful senator and coincidentally the highest unemployment rate in the nation. All that power has really worked out well for us. No jobs, high default rates, no wonder. Thanks Harry.
Reality is like Physics-you can't cheat it and you can't bargain with it.You can only choose up to a certain point to accept it,and the earlier you decide to accept reality the less damage you have to endure.Do what's best for your own econimic well being people,it's a bussiness decision.Bussineses default on their loans everyday,it is no less imoral to make that decision for yourself unless we have a double standard here.No matter what circumstances brought you to this point in reallity,I applaud anybody who now is facing up to their reality and doing something about it.Do what you have to do,nothing less!
How quickly the neocons forget how we got to this point.
Obamas point man seems to have driven off the cliff.Time to go Harry.What have you done for us.
You people that subscribe to either political party's ideology are really sad. Do you see why there's an anti-incumbent attitude among independents in this country? We don't trust either of you. All you do is point fingers. The reality is that no political party solely caused or is going to fix this mess. The Fannie/Freddy program to encourage home ownership certainly didn't help, and neither did the lack of oversight by the various agencies in the later years.
It's so sad when I see that the first comment on any story either blaming Reid, Gibbons, or Bush. It doesn't even matter what it's regarding, and most of the time you don't even think before responding. You just subscribe to this ideology and automatically regurgitate what you heard on Fox, MSNBC, or some political blog that's the furthest thing from being objective. And one of the most hilarious parts about it...you actually think that you're an informed intellect when you do it!
You're all brainwashed cult members. Think for yourselves and stop being gullible sheep. Start focusing on individual ISSUES and not what your political party is telling you to believe in. So friggin sad.
Cinderella,
You are a stand up person. So the credit report that's says you borrowed x amount of dollars on a credit card that you bought things with, and did not pay the money back? If that is what you are saying, then you are correct. It's a tattle tale that you didn't pay your bills. Lmao. What did you buy that you can't pay back? Can you sell those items for cash and pay down your balance? You'll say none of my business, but when MY money goes to pay for your mistakes, it is my business. Either way, at the end of the day I'll get in my paid off Lexus and go home with the ac nice and cool. Good luck in whatever u do, and if u pay your bills and have responsability, you can be a normal citizen again.
r-sliter:Couldn't have said it better myself.When are people going to realise the right-left paradigm is over.They both aren't working for us,only themselves and the corporate oligarchs pulling their strings with their lobbyist and huge campaign donations.Personally,I don't see much differene between them.All these sub- issues are merely distractions,flag burning,gay marriage,mosque building etc,to keep our eye off the important issue,and that is our country is being looted and pilliaged before our very eyes by the banks,wall street,and our goverment.There is no other issue if this country's economy collapses.Do you see what both of these parties did to us by bailing out the big boys.The road we are on now if allowed to continue will certainly lead to total econimic collapse.The best case scenario even at this point is your great great great grandchild will still be trying to pay off the debt we have accumulated as of now. Pray tell who will be standing to pay off the rest we are adding everyday?Time to work together on this issue,or shall we keep blaming the other party exclusively for all our problems?Nothig has changed from Busch to Obama.Get over it,it's time we hold both parties accountable for the problems that aren't getting fixed.Hope & change is fine,But if they can't lay out a plan about what they are going to do to accomplish this change that makes sense to you before they get elected,well then I have no hope things will change.Use your head people, does it look like either party is working for you,or the people who are paying them to get elected.WAKE UP!
So what the libs are saying is that Harry Reid did not sponsor and vote for any of the bills the "neo cons" created to crash the economy. Such as Fannie and Freddie, No Child Left Behind, The War...no he didn't agree to any of these things.Riiiiiiiiiight.
Also people can see his voting record here on everything financial back to 2005. And you'll see most every time he voted for the "evil" bills that caused this mess:
http://www.votesmart.org/voting_category...
When you have a Senator who works for himself first and everyone else but us second, these are the kind of problems we get. I can't take another six years of Reid...
Yea,let's stick that telephone pole on the other guys property,Iknow now he has 2 of them,so what,and I still want my phone service.Those underground utilities should be miles away,and they should figure out how to get me my services no matter what it costs.Mabey they could beam it all here,oh wait that might have radiation in it.Ya Cinderella go back to your fairy tale castle!
P.S. Cinderella;I kinda stuck up for the people that can face reality and realize their mistakes and do something about it,but the people that think there are magic unicorns that poop pretty rainbow skittles are beyond the pale!
Cinderella;Please tell me how u profited on a house the bank took away from you.I know,you stayed in the house rent free because the morgage holder has a backlog and they don't wan't to dump too many houses on the market at the same time,therefore depressing prices even further.To put 50% down on even a starter house in Portland your talking bout 60 grand.If u were paying on your mortgage here at about,lets see 2 grand a month,that's 30 months hanging around for free,that's2 1/2 years.Well fine,u gamed the system,did what u think u had to do,and at least saved enough to pay half of the next mortgage and didn't blow it going to see your friends at Disneyland.But what are u going to do when the housing drops a little furter in Portland,which I very well believe it will.Good question,since now u have some skin in the game?By the way your decision is not free of consequences for other people.The homeowners assoc. other property owners had to make up the difference that u stiffed them on.The home u left behind is now a problem for the bank to stay solvent,the people who still live here to maintain their investment values,the gov.who may have to bail out the banks,the taxpayer who supplies the money to that gov,the world who relies on our stability etc,etc.U made the best decison for yourself economically,But u left a trail of wreckage behind in your wake.I hope u wake up from your American Dream,I having a nightmare right now knowing my country is is so full of people that that only care about what's in it for them,everybody else be dammed!!!
Yes Cinderella I can somewhat understand strategically defaulting since the banks did cause this mess but stiffing your former neighbors with your Homeowners Association Bills was highly unethical and morally wrong.
A house is a place to live first and a long term investment second. It is not a get rich quick scheme.
For those that are fortunate enough to still be employed, can still make their mortgage payments and still walked away because the value has fallen below purchase levels.. the devil take you.
There was no clause in your contract that said your obligation ends when the real value falls below a certain point. You can either make the payment or not.
That was true when you bought it and remains true until it's paid off. If you stay in it long enough to pay it off, the real market value was and is irrelevant.
For those that walk away and don't have to, of which there are too many, you deserve at least what you get. Maybe more.
P.S Your mistake was buying a house u can't afford in the first place.If u could afford it,you were afforded the rights to any appreciation in value,and the assumption of any decrease in value.Gladly take that increase,push the loss onto someone else.You have a right to walk away, I'll give u that,and it might of been the best economic thing to do, but the in your your face "willing to do anything for a buck and get away with it!" just screams of somebody who forgot to look in the mirror.Be sure to get to know your neighbors up there in Portland,u might want to know the names of the people who might do to u what u did to them.Oh well save your money up some more again,then mabey u can afford to skip town and move to the Rheolyte ghost town.No neighbors to effect there!
Your right,I dont't think I care anymore either,thanks to your story.Isn't it great to know that your honesty affectd at least 1 person?And when u leave this world,we all might chip in for yor tombstone epitaht,"At least she didn't rip out all the fixtures"Have a nice NEW life,though I have my doubts anything is changing much for you!
Cinderella you have left me speechless.... not that anything anyone whould say would make any difference. Good luck to you.
cinderelladream...please let me know where you live now. I would never want my family to live in even in the same state as you. I saw where all these gang girls just ripped off many of the citizens here. In my way of thinking, you are no different. In the "ho handbook", rule number 3 is, "Rip off booze in the local 7 Eleven", rule numer 4 is, "Take out a loan, promise to pay it back, and then leave the state".
NV is Harry Reid's plantation.
bush...the gift that keeps on giving.
america deserves another just like bush.
ha,ha,ha.
i would laugh!
ImproveLV, great post. We can't depend on either party to do anything.
A member of the Oprah economics team shares her wisdumb.
Cinderella perhaps I'm not so speechless after all.... paying YOUR Homeowners Association fees until your foreclosed home was taken over by the bank would have been the morally right thing to do for your neighbors. Count yourself fortunate that I was not on the board of your homeowners Association.
The Federal Gov't caused the whole debacle by forcing banks to loan money to people who had absolutely no business owning homes in the first place. The false and unsustainable housing market was totally and completely manipulated into absurd valuations.
And yet you all want to point fingers at people who choose to walk away from a house that was never even worth 40% of the sales price.
The real criminals, in all this, are the gov't and banking officials who all got very rich off this mess.
Who forced the buyer to buy the house?I understand it was an absurd valuation.When people at a car wash were buying 1/2 million dollar houses,it's a little telling!Sort of like in 1929 the shoeshine boys were giving out stock tips to the Wall St. traders who came by for a shine.The smart one's realised at this point to get out of the market.When everybody's in,you better get out,and fast!Manias are like that,huh.
roguerunner is absolutely correct. A Wall Street guy sat down to get his shoes shined before The Great Depression, and the shoe shine boy asked him if he wanted a hot stock tip. That's how you knew it was time to get out.
How I knew that the housing market was in a massive bubble, was when I heard a female acquaintance on the phone, that had just moved here from the Midwest, and had ZERO financial acumen, telling her friend that she was going to buy a house, and flip it in 6 months for a $50,000 profit.
I knew then, that the end was near. Unfortunately, it proved to be correct.
any of you knuckle heads remember 9/11? vegas took a big hit afterwards and now you have a situation that is 10 times worse. blame jesus christ for all i care, but it comes down to the consumer who bought those overpriced houses with extravagant financing. throw in the lack of manufacturing and commercial industries and the lousy education system, you put yourselves in a big hole. even walmart and costco can't save you now.
As a further tell,it's a dead giveaway,if only as a bussiness decision,why would u buy a house and have a monytly payment of say $4,000 a month,but if you tried to rent it out could only get $2,000?Dosen't work for very long in the real world does it?Something only goes slightly wrong and u are doomed.But people thought there was a greater fool that would buy it from them for more.That only works till the greatest fool is left holding the bag.We all want to make money,and more power to ya,but ya got to realise what logically can't go on forever,dosen't.I have never bought any asset that hasen't penciled out from the get go.If I couldn't make money on a deal shortly after aquiring it if I HAD to sell,or couldn't derive a steady income from ,I didn't buy it.I did not participate in the absurd run-up when these criteria were no longer valid.I lost out on some of the bubble mania profits,but I wasn't left holding the bag either.But I'am left with liquidity to make a move when the time is right.Econimic conditions will have to be trending upwards and and my criteria will have to be attained ,or the deal would be priced well enough that with further downward movement I could still break even.This philosophy has always worked for me.There is always another bubble comming around the corner,and it's o.k. to recognise and participate in it,just face the reality that bubble manias can't last forever and they won't.Finding the right target is important and sometimes hard.But gettining the timing right is more than 3/4 of the game.No,I have not won them all,There are unforseen curcumstances(bad luck) sometimes,but the more circumstances u can forsee,the better your luck seems to be.Get informed and do your reserch,it's never too late to act on that.
http://theeconomiccollapseblog.com
Mary said to Jesus, "What are your disciples like?"
He said, "They are like little children living in a field that is not theirs. When the owners of the field come, they will say, 'Give us back our field.' They take off their clothes in front of them in order to give it back to them, and they return their field to them.
For this reason I say, if the owners of a house know that a thief is coming, they will be on guard before the thief arrives and will not let the thief break into their house (their domain) and steal their possessions.
As for you, then, be on guard against the world. Prepare yourselves with great strength, so the robbers can't find a way to get to you, for the trouble you expect will come.
Let there be among you a person who understands.
When the crop ripened, he came quickly carrying a sickle and harvested it. Anyone here with two good ears had better listen!"
Looks like most of you all are just another Hypocrite that knows nothing but "IN MONEY WE TRUST" every payment you make to the credit card to the trilateral commission goes right to the PRC bank of China, do you have anything in your house made in China? who by the way own you too, they purchased your birth title debt,enjoy the wine(money)and keep on supporting the Elite bankers enslavement of "we the people", do you know who owns the Federal Reserve? silly angry boy. This is bigger than your money, this is for your soul... go rent a good Disney Americaland movie(Capitalism;A love story)Mr.Moore got it right this time... O and dont forget the Monsanto popcorn to go with the New world Order 3d quantum hologram blue beam project movie outside your Nano-reality.
You people blow me away!!! Where is your outrage for the banks, credit card companies, and business owners, including Station Casinos, that are walking away from their contracts? So its ok for the likes of Donald Trump to declare bankruptcy time and time again, but lets tar and feather people who have lost their jobs, and their homes have lost 50% of their value so they walk? Are you kidding me????
Whether you like it or not, a home is an INVESTMENT. Anyone with any business sense would not continue to pour good money after bad. Walking away from a mortgage company that refuses to work with you on this bottomless hole of a house is the RIGHT thing to do, any good business adviser will tell you the same.
Give up with your moral obligation crap! If you want to stay and throw your money away, then have at it. But don't try shaming others into following your ideas. Your wasting your breath.
Oh and by the way, Portland and Seattle homes are still worth the money you invest. And there are jobs here, so try another city.
who'd want to live in seattle?
I don't believe a word that cinderalla has spewed. She is more than likely some 13 year old punk trying to get a rise out of everybody.
Vindicator;Liked your reccommended blog.I even bookmarked it,thanks.I do share your outrage for banks,credit card companies,not all bussiness owners,yes the unscrupulous ones.I also have much outrage for my goverment,theFederal Reserve,the I.R.S,freeloaders,partisan b. s. politics,hypocryts,out of control wars with still more to come,the gov. caused unemployment,religous hatred,hatred in general ,hit&run posters with nothing to add that avoid any kind of meaningful discourse that say the same thing word for word over and over.Iv'e been posting for only 2 weeks now and Iv'e tried to cover the topic that arises with my point of view,mabey add some info or my real world advice comming from the heart.Mabey someone will be helped by it,mabey not.But I'am only responding to what I see written before me,choosing the one's that hit a nerve.I can't respond to them all or this will go on forever.I'am choosing my battles in every post.Most of your concerns have been met in other posts.I like that people respond,gets my brain in gear.But sometimes it's pretty discouraging,even after 2 weeks here.I try to come up with mabey a different but honest slant on things,But usually it goes over people's head and is ignored.Mabey it's time to check out of here already,and go back to conversing with my peers .But they already know this stuff,and will be preaching to the choir,Not much fun,and no intellectual challange when they pretty much agree with everything you say.Another alternative is bottle it all inside,but the anger just churns your stomach,so I believe getting it out is good.Just don't know yet if this is the right place or not.Time will shortly tell. P.s.Jaquekeno.I have come to the same conclusion.I read her past posts,just for curiosity,man I don't think anybody like this is for real.But the funny thing is I found myself agreeing with her now and then!I guess it really is people like this that make the world keep spinning,huh.
Sorry that wasrwal2222 I was responding to in general.........didn't sleep to well last night reading about all the crap going on in the world.Vindicator,I appreciate your comments,a bit muddeled for me but ia'm still trying to peice it all together.Dipstick,You are right on and I will move on when I get the oppertunity.But you are off a little bit,it is only 8 times worse.See I can be an optimist too!
Given Nevada's status as the world's adult resort, it is not surprising that a contraction in consumer spending would hit Nevada especially hard. IMHO, the light can be seen at the end of the tunnel. The sweeping Card Act has many variations of money-shuffling, but I think one important aspect is the way payoff terms must be displayed.
When a consumer sees that if only the minimum amount is paid, the pay-off period may be a decade or more. I recently procured a new Chase card from CompareCC.com with a small balance transfer. The first statement stated my pay-off period would be 12 years if a paid only the minimum. Double the minimum and the period dropped to 14 months. An easy choice.
Nationwide, consumers are reducing their debt out of fear and frugality. This trend can only continue for a fixed length of time and then consumers will be back enjoy their gambling vacations without pushing their credit to the limit. The boon will come back and it just may stabilize and stick.
They are also reducing their debt through necessity and bankruptcy.Consumer debt Is being reduced for even the greatest credit scores.Consumers do not have an appreciating home as their reserve piggy bank anymore to spread around.The economy in general is on a great downswing trend.This is not your friend if u depend on gaming.
Reduced consumer debt increases money supply. The kind used to build the MGM City Center. It's like winding a spring, the longer it winds, the more tension to be released. I understand it is tough now, but this contraction will allow us to grow in the future. A needed pull back.
Reduced consumer debt hopefully means they are paying off the debt with their savings.Less savings mean less doing things,like say a trip to the Cosmo.Now there is less money in the system,nothing has been spread around,it's called the velocity of money.The banks dont make anymore money off paid off loans either.Less earnings mean less loans to places like city,fountain,cosmo,something I can't see for about a decade.They will have to see where the chips are falling with these places first,and I know they are not falling my way!