The Foreclosure Crisis in Las Vegas
And Around The Nation

One day I hear and read and watch on TV that we have only just begun to see the full effects of the foreclosure crisis.  The next day that all seems to be swept under the rug and things are looking up.  It just seems you don't know who to believe and what to think about in regards to our futures.  Should we try and buy a new home, new car, new TV, etc.  Or do we sit on our money, stay put and make do with what we have.  No one has a crystal ball of course, but I do not want to live my life in fear from day to day.

I have been trying to figure out what happened?  I went to a foreclosure class recently and got a few facts.  Our teacher threw out these numbers.  9,000 letters of default are issued daily in the US. 400-500 are issued daily in Nevada.  The number that scared me some is 2.3 TRILLION ARMS (adjustable rate mortgages) have not yet reset! Now that is a scary number. Course it use to be you could not get a loan and credit was so tight.  In the Carter era in 1977 something called the Community Reinvestment Act it was to help communities get loans.  It has been deregulated almost every administration since.  Too read all about this act click here   Did this act have anything to do with the mess we are in now?  Seems to me it may have at least been easier for lenders to do very creative loans.

This is what is happening in Las Vegas right now.  If you go to a Trustee Sale you have to be a cash buyer or have a certified check.  The trustee sale is the event that concludes the foreclosure process. In states that have deeds of trusts as opposed to mortgages, the trustee is named in the deed of trust, which is the document that the borrower sign in addition to the loan documents. When a borrower falls behind with payments the lender can initiate foreclosure procedures by recording a notice of default. If the borrower does not cure the default after the notice of default, then a date for a trustee sale is set. The trustee will set a minimum bid for the trustee sale and if nobody bids, the property goes back to the lender. Keep in mind also if you bid on a property at a Trustee Sale you take on everything about that property, liens, back property taxes, and the IRS can come and take it away.

 When the properties go to AUCTION only 12% are going through.  Now the banks are trying to draw multi-offers by lowering the property to VERY low prices and then you have a bidding war.  I have a buyer right now and so far this has happened twice.  So if you are looking to buy a bank owned property, ask a lot of questions.  Ask how many times the price has been lowered, have your agent to check to see if there are any other offers and be sure you are willing to go up on price if there are.

Some lenders are now not even putting the properties on the market, but doing 5 year leases until the economy improves.  

Will the new stimulus package help? Time will tell.  In the mean time if you go to buy a bank owned property ask a lot of questions. 

Single Family Residence

On The Market                16,836

Bank Owned                      5,511

Short Sale                          5,599

Foreclosures                         650

Pending/Contingent         5,391

Homes Sold                          362

Condo/Townhouses

On The Market                   3,474

Banked Owned                  1,451

Short Sales                         1,079

Foreclosures                            20

Pending/Contingent               622

Homes Sold                              60

These are the Stats for the Las Vegas Valley only.  Not Boulder City, Pahrump, or Reno only the Las Vegas Valley it does include Summerlin, Henderson and  North Las Vegas

If you are looking to move or invest in Las Vegas Please give me a call
If you have a home to sell in Las Vegas I would love to sit down and talk with you.

Single Family Residence

On The Market              11,082

Bank Owned                     5,218

Short Sale                        5,629

Foreclosures                        690

Pending/Contingent            301

Homes Sold                         15

Condo/Townhouses

On The Market                   4,545

Banked Owned                   1,388

Short Sales                         1,049

Foreclosures                           95

Pending/Contingent               45

Homes Sold                             2

These are the Stats for the Las Vegas Valley only.  Not Boulder City, Pahrump, or Reno only the Las Vegas Valley it does include Summerlin, Henderson and  North Las Vegas