Nevada records nation’s highest foreclosure rate in 2009

By Buck Wargo

Published Wednesday, Jan. 13, 2010 | 9 p.m.

Updated Thursday, Jan. 14, 2010 | 9:33 a.m.

More than 10 percent of Nevada’s homes received at least one foreclosure filing in 2009, keeping the state in its No. 1 ranking for the nation for the third consecutive year, according to statistics released by a foreclosure-tracking firm.

Nevada had 112,097 foreclosure filings in 2009, a 44 percent increase over 2008 and 226 percent gain over 2007, according to California-based RealtyTrac.

Statewide, foreclosure filings picked up in December, increasing 27 percent over November. But overall, foreclosure filings dropped 37 percent from the third quarter to fourth quarter as the state implemented a new program that allows homeowners to seek mediation with lenders to modify their loans.

Analysts have been mixed on where the trend is heading in Nevada given the job losses in construction and gaming. At the same time, more lenders have been willing to modify loans and allow homeowners to sell homes for less than is owed on the mortgage, they said.

Arizona recorded the second highest foreclosure rate with 6 percent of its housing units getting at least one foreclosure filing, RealtyTrac reported. California was third and Utah fourth.

Nationwide, RealtyTrac reported the number of filings in 2009 rose 21 percent over 2008 and 120 percent over 2007.

“As bad as the 2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans,” said James Saccacio, CEO of RealtyTrac.

After peaking in July, the nation had four consecutive monthly decreases driven by trial-loan modifications, state legislative action extending the foreclosure process and overwhelming volume of inventory clogging the foreclosure pipeline, he said.

First American CoreLogic, meanwhile, reported today that the 90-day delinquency rate for Las Vegas rose in November to 20.47 percent, up from 19.39 percent in October. The delinquency rate was 13.87 percent in February.

The data firm also reported the foreclosure rate for mortgages was 8.37 percent in November, an increase of 4.48 percentage points since November 2008.