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Las Vegas Foreclosed Homes Declined, Metro Ranking Improved

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By : John Cutts    99 or more times read
Las Vegas foreclosed homes decreased in number in November, improving the ranking of the metro area from the top of the metro area foreclosure rate chart to fifth place, based on data released this week by a California-based research firm.

The pace of foreclosure in Las Vegas slowed down sharply by 33 percent, with one foreclosure posting for every 102 residential units. However, the pace was still much higher than the nationwide pace.

Nationwide, one foreclosure was reported for every 417 residential units, with almost 307,000 households receiving foreclosure notices. The total marked a drop of almost 8 percent from the previous month but was 18-percent higher than the total in October last year.

Across Nevada, foreclosure filings also dropped sharply, amazing observers and prompting them to analyze what drove the significant decline and whether the trend was permanent or temporary. Total filings dropped to 9,295 in November, marking a substantial 33 percent drop both from filings in the previous month and filings in November last year.

According to analysts, the state mediation program which was launched in July may now be showing its impact in the significantly reduced number of Las Vegas foreclosed homes and distressed homes across Nevada.

Under the program, every homeowner receiving a notice of default is given the opportunity to negotiate for a modified loan in a mediation session administered by the state. Based on loan modifications worked out, many lenders reduced interest rates and principal to enable homeowners to save their homes.

Analysts also cited the role of short sales in the decrease in foreclosures. They observed that more lenders had been approving short sale proposals from distressed homeowners or their legal representatives.

If foreclosure filings continue to decrease, Las Vegas may recover more quickly than other cities, according to area analysts. They contended that bargain prices will wipe out the inventory, restoring the housing market to its normal and stable condition.

Other analysts however doubt the quick-recovery contention, arguing that the unemployment rate of Nevada has hit 13 percent and the continued drop in home values.

Filings in Nevada decreased sharply in November, but the state was still on top of the foreclosure chart, with one foreclosure for every 119 residential units, almost four times the nationwide pace. Its November filings nevertheless marked a decrease of 52 percent from the July total of almost 20,000.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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