Posted by Paul Francis on Wednesday, October 17th, 2012 at 2:57pm.
Corelogic® Releases August 2012 Stats
Corelogic® recently released their October Market Pulse report that included a chart showing the % of home loans out there that are 90+ days late. While it was no surprise that Nevada was in the top 10, what was a surprise were the number of states that you rarely hear about when it comes to the number of foreclosure notice filings.
Also a big surprise is that Arizona has dropped off of the top 25 list for the percentage of delinquent home loans 90+ days late. It didn’t seem like it was too long ago that Arizona was competing with Nevada for the top spots in the number of foreclosure filings reported. Arizona took the path of dealing with distressed homeowners head on and not delaying out the foreclosure process resulting in now having a healthier real estate market with less distressed homes that will eventually hit the market as Bank Owned Properties or short sales who knows when. Currently, only 5.2% of Home Loans in Arizona are seriously delinquent 90+ days.
Keep in mind these rankings are different then foreclosure notice filings due to the mere fact that foreclosure notices are only filed if the lenders actually file them and initiate the foreclosure process. Foreclosure notice filings are not automatic and it’s up to the lender to initiate the foreclosure process. Just because lenders might not be initiating the foreclosure process and filing foreclosure notices, certainly does not mean that there are not homeowners out there seriously delinquent in the home loan payments.
Seriously Delinquent Home Loan Chart
(Black Lines signify highest percentage of seriously delinquent home loans recorded since 2000, Red Dots signify percentage of Home Loans seriously delinquent 90+ days late as of August 2012.)
Nevada Shows Significant Improvement from the Peak of the Foreclosure Crisis
From over 18% of all Nevada home loans to the current rate of 11.8% is a significant improvement. However, it’s still over 1 in 10 homes with a mortgage in Nevada. What happens if the lenders ever do initiate the foreclosure process on these distressed homeowners is full of speculation.
With Las Vegas home values already hitting rock bottom and more buyers then Las Vegas homes available for sale, it’s very difficult to predict what will happen, if anything to current home values. Unlike a couple of years ago, the foreclosure process in Nevada is now very slow with reports I’ve seen averaging at 471 days from when a Las Vegas homeowner stops making their payments. With the tremendous reduction of foreclosure notices filed this year compared to previous years, one thing is fairly certain that there is not going to be an avalanche of inventory dumped on the market at once anytime soon.
Will it continue to be a sellers market in Las Vegas where homeowners can get multiple offers on their homes within days? For now.
Paul Francis, Realtor
Prudential Americana Group, Realtors
Las Vegas Real Estate
- Las Vegas Home Values 89135 September 2012
- Las Vegas Home Values 89138 September 2012
- Las Vegas Home Values 89144 September 2012
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