Foreclosure Fireworks in Nevada

The end of the year saw Nevada breaking its bank foreclosure records. In the fourth quarter there was one foreclosure for every 392 houses in contrast to the national average of one for every 1,055 units.

However there was some consolation. Nevada hopped down from the top position to second rank. Colorado foreclosures jumped to the first position. The position of north Nevada is better than its southern regions. In Carson City and Washoe County the average was one foreclosure for 4,400 houses. But in Clark County it was one out of 277 units. In northern Nevada building construction has slowed down helping the foreclosure figures to decrease. However it has adversely affected those whose livelihood is connected with the construction industry. But housing development is not a world in isolation – so it is affecting others in a chain reaction. Mortgage brokers are in bad position and can only hope that the market is sure to make a turn around. This sort of a situation cannot continue indefinitely. Many of them had harsh words for those within their profession who had gambled with predatory lending. The blame was put on new adventurers and upstarts in southern Nevada.

Some are unwilling to blame only the lenders for the foreclosure fiasco. The borrowers too had a responsibility to see what they were walking in to. The argument was weak from the beginning – borrowers had hoped that their income would live up to expectations and also that with the rise in value of houses the equity too would increase and everybody would be sitting pretty. But none of these became realities.

To make matters worse reports are coming in of disgusting scams from Las Vegas. These were largely responsible for the rising tide of foreclosures. In the blame game some are of the opinion that like the 80’s it is a cycle of bad times – that will soon roll away. Everything runs in cyclical order. Now it is the down-cycle. In the 80’s interests were 18%!

Nevada is not the only sufferer in the west. In San Diego foreclosure numbers have gone up at an alarming rate. In California banks repossessed 31,676 houses during the last quarter showing an increase of 421.2%. One year ago the number was 6,078. In the Bay Area foreclosures jumped by a record 482.5% during this time with 4,573 foreclosures against 785 in the previous year.

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