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October 21, 2014

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Foreclosure rate drops, but Nevada still ranks No. 1

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Sam Morris / Las Vegas Sun file

Houses sprawl across the Las Vegas Valley. When the housing bubble burst in 2007, Las Vegas became the No. 1 area in foreclosures nationwide.

Nevada has seen a decline in foreclosures compared to last year, but the state kept its No. 1 national ranking in the first half of 2010.

California-based RealtyTrac, which monitors foreclosures nationwide, reported foreclosure filings fell 13 percent from the second half of 2009 and fell 6 percent from the first six months of last year.

That was a better showing than the nation as a whole, with foreclosure filings up 8 percent compared to the first half of 2009. Filings nationwide fell 5 percent compared to July to December 2009, but Nevada still fared better.

The area’s foreclosure problem, meanwhile, isn’t over, based on the latest numbers released by national research firm CoreLogic.

The firm reported that in May 21 percent of mortgages in Las Vegas were delinquent by 90 days or more. The 90-day delinquency rate was only 13 percent in January 2009.

The increase is a reflection of the economy and people losing their jobs and household incomes declining, analysts said.

Backing that up, Forbes reported this week that Las Vegas ranks at the top of its list of riskiest cities for homeowners. It predicted that a new wave of foreclosures is likely to occur in the coming months.

Forbes cited the city’s delinquency rate in making the forecast.

Nevada had 64,429 foreclosure filings in the first half of 2010, which equated to one filing for every 17 households or 5 percent of the housing units in the state, RealtyTrac reported.

Nevada had 38,077 foreclosure filings in the second quarter of 2010, which was 10 percent higher than the first quarter, RealtyTrac reported. The second quarter filings, however, were 13 percent below the level of the April through June period in 2009.

RealtyTrac reported that the pace of properties entering foreclosure slowed because lenders delayed proceedings by being more aggressive with short sales and loan modifications.

Wells Fargo, for example, held a workshop in Las Vegas last weekend to help customers obtain loan modifications or take other steps to avoid foreclosure.

Even though lenders slowed on starting the foreclosure process, they quickened the pace on taking possession of those properties whose proceedings were delayed in 2009 by foreclosure prevention efforts, the firm said.

In Nevada, 10,747 homes were repossessed in the second quarter, RealtyTrac reported.

Arizona was ranked second in the nation behind Nevada over the first half of 2009. Florida was third and California was fourth. Utah ranked fifth.

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