North Las Vegas Multi Family Foreclosures and Fitch Ratings- By: John Cutts
The still high number of single-family and multi family foreclosures in North Las Vegas has contributed significantly to the downgrading of the city’s general obligation bonds by Fitch Ratings.
Fitch downgraded from AA to AA- the $339 million GO bonds which the city has already issued. Additionally, Fitch assigned AA- to the $145 million GO bonds sold in May.
Based on the Fitch report, North Las Vegas pre foreclosures and completed real estate foreclosures are still among the highest in number in Nevada. In addition, they also pointed out the slow economy in 2009, the decline in tax revenues, the drop in property values, the unemployment problem, and the decline in revenues from gaming and tourism.
Analysts said that single-family and multi family foreclosures in North Las Vegas pushed down property assessments for fiscal year 2010 by 27 percent and by a further 29 percent for fiscal year 2011. They said that the non-agency foreclosure rate in the city was far above the national non-agency foreclosure rate of around 21 percent.
Despite efforts by the city to manage its budget and expenditures, its finances are being weakened by substantial declines in tax revenues. Although the city stopped hiring and cut down its expenses, its general fund total is still expected to fall to about $14.9 million at the end of fiscal year 2010, far below $39.4 million at the end of fiscal year 2009 and the record high $45 million at the end of fiscal year 2008.
In May, both bank repossessions and pre foreclosures in Nevada decreased, but the numbers were still high. Pre foreclosures dropped by 12.7 percent from 12,121 in April to 10,583 in May while repossessions dropped by 8.13 percent from 4,096 in April to 3,763 in May.
All in all, in the first five months of the year, there were 14,816 single-family and multi family foreclosures that were taken back by mortgage lenders.
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