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Jul. 11, 2009
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REAL ESTATE: U.S. foreclosures down 11 percent but Clark County numbers defy trend

Short sales on the increase

By HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL
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Maybe it's the moratorium, maybe it's the government bailout. Perhaps President Barack Obama's loan modification program is starting to take hold.

Whatever the reason, foreclosures declined to 205,301 in the second quarter, down 11 percent from the previous quarter, according to the U.S. Foreclosure Index from Sacramento, Calif.-based Foreclosures.com.

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    • Clark County's numbers were less upbeat, with foreclosures rising to 2,686 in June, compared with 2,397 in May, the online investment firm reported. That number was down from last June's foreclosures when there were 2,867 foreclosures, the firm reported.

    Preforeclosure filings, which include notices of default and notices of foreclosure auction, dropped sharply to 5,443 from 8,107 in May. They're up from 5,103 in the same month a year ago.

    For the first six months, Clark County foreclosures nearly doubled, to 23,588 from 12,800 last year. Preforeclosures increased 34.8 percent, to 47,467 from 30,922 a year ago.

    Nationally, preforeclosures fell 10 percent in the second quarter to 494,078, with the largest drop of 42 percent in the Midwest, the index showed.

    "These huge drops -- double digits in many parts of the nation -- are a sigh of relief for the economy and housing markets as they bump along toward recovery," Foreclosures.com President Alexis McGee said.

    The real surprise, she said, was the 2 percent to 3 percent drop in both foreclosures and new filings this year compared with 2008.

    "This may not be a big drop, but the fact is 2009 has not seen a total increase in new filings as everyone has expected," McGee said.

    Frank Nason of Residential Resources in Las Vegas said it's a temporary lag. He's seen industry reports vary from 10,000 to 20,000 real estate-owned homes that banks have been purposely keeping off the market.

    He doesn't know if it's by design or to stabilize the market or sheer inability to handle the volume.

    "I find the argument for a buildup in properties that must be released to the market more compelling than those who say otherwise," Nason said.

    Although the number of REOs has fallen from 51 percent of all home listings in January to 39 percent in June, the number of short-sale listings increased from 38 percent to nearly 55 percent, Residential Resources reports. Of all closings in June, less than 9 percent were short sales.

    Nason said he finds this trend "quite disturbing" given the deteriorating job market and overall economic indicators. It means 10,000 more units will be entering foreclosure, many ultimately sitting vacant with no utilities. Some will get trashed by frustrated owners, he said.

    Timothy McFarlin, a loan modification attorney in California, said the 26 percent decrease in second-quarter REOs in California could be due to a new law there. It requires lenders to give the borrower 90 days to work out a foreclosure solution before filing a notice of default.

    "That wouldn't account for changes in Nevada, of course, but possibly it's throwing a wrench in the lenders' systems and everyone gets extra time," he said.

    Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.

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    Doug wrote on July 18, 2009 10:04 AM: Some of the comments I have been reading seem accurate for some of the markets within the market. There are dozens of factors that must be considered when answering the question: Is now a good time to buy?
    I do believe, the average house (1500-2500 SQFEET) will continue to fall in value. This is because of the market is flooded with these size houses. It is also due to the fact that other's like my family, who are able to buy in the 500-700K range, area able to stand strong in these touch financial times. There for, the home values in this range wont fall as much as they would in a common neighborhood.


    Roger wrote on July 11, 2009 06:07 PM: As a former owner of LV real estate, I love reading these comments. LV was so good to me when I sold out in 2006 and now all these idiots are telling everyone now is the time to buy. Hey, if you want to be wealthy, wait...wait. Vegas will be so much cheaper in 2011, but realize only the best properties then will go up while most of the valley will incrementally increase at a rate lower than most other investments. I love Vegas as it is full of the gambler mentality, which means this town is full of losers and it will always be this way.


    Really? wrote on July 11, 2009 03:34 PM: Jerry, I don't think you will be saying that in a year when the house next door sells for 20 grand less than you bought yours for. I am pretty sure the tax credits won't equal that. John O, dude, try sticking with the subject matter. They have other blogs that you can post on for your metro complaints. Go there, I am sick of hearing about that.


    ET wrote on July 11, 2009 03:28 PM: There goes John O again, he's running the same ad in every section.Forget about it ,it's a new day and you don't get anywhere crying over the past.


    RANDY wrote on July 11, 2009 11:24 AM: MY OPINION IS THAT THE BANKS ARE KEEPING FORECLOSERS OFF THE MARKET TO KEEP PROPERTY VALUES FROM COLLAPSING FASTER. THEY HOPE TO START SHRINKING THE SUPPLY OF HOMES ON THE MARKET IN ORDER TO GET MORE PEOPLE BIDDING ON THE SAME PROPERTY. THIS STRATEGY WILL BRING THE SELLING PRICE UP. ALSO, THEY WANT CASH CUSTOMERS. I HAVE SOURCES TELLING ME OF PROPERTIES SELLING FOR GREAT DISCOUNTS FOR CASH. OTHER BIDDERS FOR THE SAME PROPERTIES BIDDING WITH FINANCING AS A MEANS FUNDING THE PURCHASE ARE NOT BEING CONSIDERED. THE PLAYING FIELD IS VERY UNFAIR. BUYING A PROPERTY NOW IS O.K. BUT, IT WILL BE CHEAPER IN 6 MONTHS. THAT IS THE TREND RIGHT NOW. YOU MAY HAVE TO WAIT ABOUT 10 YEARS TO SEE ANY APPRECIATION. 2.5 PER CENT A YEAR IS NORMAL. IN CLARK COUNTY, WE HAVEN'T MADE IT INTO POSITIVE TERRITORY YET. BUY NOW AND PRAY.


    Jerry wrote on July 11, 2009 10:15 AM: Put off buying a house because it's value is going down? The same could be said about buying a new car, because we know that the value will be less in a year. I bought my house to make it into a home, not a ATM. Besides, with all my new tax deductions, I will come out ahead. The rest of you can sit on the sidelines and watch me come out ahead.


    John O wrote on July 11, 2009 08:47 AM: This is all meaningless.
    Why is the RJ hiding the fact that Metro policeman commited murder by shooting a man in the back WHILE HE WAS RUNNING AWAY!.
    Why has David Roger refused to bring manslaughter charges against the other policeman who was drag racing on Flamingo which resulted in the death of the other drag racing participant?

    The criminals are in charge and the so called journalists look the other way.


    David wrote on July 11, 2009 08:17 AM: Steve, you are absolutely right. People who are buying homes right will still lose money for at least another year. These real estate agents and all of the commercials that you hear on tv or radio are garbage!


    WELCOM TO THE OBAMA DEPRESSION wrote on July 11, 2009 08:14 AM: The is the Liberal and Obama Depression. Government, solely, created this mess. Government will make sure the Obama depression continues for a long time. Government is not the answer it is the oppressor.


    Refi is a joke, too wrote on July 11, 2009 08:12 AM: These damn mortgage companies and corrupt banks really screw you over in refinanacing, too. Pay all the ridiculous fees and taxes, just to have the same mortgage but at a lower interest rate. These institutions are full of snakes. The cost to refinance is not worth it, in the end.


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