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Foreclosures decrease in 2010 due to short sales and modifications
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LAS VEGAS REVIEW-JOURNAL
Nevada saw a 19 percent decrease in foreclosure starts in 2010 -- the first drop in four years -- as more short sales and loan modifications were approved, an annual summary from San Francisco-based Fore- closureRadar showed.
The online foreclosure tracking firm counted 86,010 filings of new foreclosure actions last year, down from 106,425 in 2009. They're up from 75,814 and 38,690 the previous two years.
California and Arizona foreclosure filings fell 33 percent and 18 percent in 2010, respectively, while Washington and Oregon had 14 percent and 10 percent more.
A number of factors have slowed the foreclosure process in Nevada, including programs such as the government's $75 billion Home Affordable Mortgage Program, or HAMP, and the state's foreclosure mediation program.
Officials from the mediation program on Thursday announced $300,000 in grants to provide education classes and free legal advice for Nevada homeowners facing foreclosure.
Investors flipped foreclosures for solid profits in the first half of the year as buyers hurried to take advantage of the tax credits, ForeclosureRadar Chief Executive Officer Sean O'Toole said Thursday.
However, the housing market began to slow when the tax credit expired at the end of April and the government's push for loan modifications waned, he said.
The "robo-signing scandal" also led to a dramatic drop in foreclosure sales toward the end of the year. Bank of America completely halted the foreclosure process for nearly two months.
As a result, Nevada experienced a 6 percent drop in foreclosure sales to 42,828 in 2010, compared with 45,420 in 2009, ForeclosureRadar reported. Arizona's foreclosure sales dropped 26 percent and California's sales dropped 6 percent. Oregon and Washington were up 39 percent and 14 percent, respectively.
O'Toole said it's possible Nevada will see an increase in foreclosure filings and sales this year, but not a wave.
"I expect to see a trickling out of foreclosures," he said. "Foreclosure levels are at an all-time high in absolute numbers, but they're at a historically low rate as a percentage compared with the people not making a payment, so it's a weird conundrum."
The foreclosure cloud will probably hang over Las Vegas for at least another two years, Las Vegas housing analyst Larry Murphy said. Roughly 20 percent of Las Vegas homeowners with a mortgage are 90 days delinquent on their payments and three-fourths are "underwater," or owing more than their homes are worth.
Lenders are reluctant to foreclose on a property because they don't want to become the landlord, but they'll foreclose before they reduce the principal mortgage balance because "it's in their DNA," the president of Las Vegas-based SalesTraq said.
He reported 21,499 bank repossessions in 2010, a 10 percent decline from 24,000 the previous year. The median price of a real estate-owned, or bank-owned, home sale was $110,000, compared with $118,000 for a nondistressed home.
A survey this week from the Nevada Association of Realtors showed that most Nevadans were not aware of federal and nonprofit programs designed to help them avoid foreclosure. More than 60 percent of those surveyed said they had never heard of the Home Affordable Foreclosure Alternative program.
Al Astraus, 82, said he's "heard rumblings" about HAFA, but nobody has told him how to apply for the program. He bought a $310,000 home in Las Vegas in 2006 and is current on his payments, but worries what will happen when his five-year adjustable-rate mortgage resets in April.
"There appears to be practically a conspiracy to accelerate foreclosures, not prevent them," he said. "That's leading to the demise of the American middle class. We will become a second- or third-rate country."
Only 3 percent of homeowners facing foreclosure said they used the Nevada foreclosure mediation program or found it helpful, the Realtors' survey found.
The program received more than 8,000 requests and mediated about 4,200 cases in its first year, with 46 percent of homeowners approved to stay in their homes, said Verise Campbell, deputy director of the mediation program. Another 16 percent came out with an agreement to vacate the home through a short sale, "cash for keys" or deed in lieu of foreclosure.
"At least they know when they're leaving," she said.
The grants announced Thursday include $49,250 to Legal Aid Center of Southern Nevada for foreclosure education; $76,680 to Legal Aid Center for the "Ask-a-Lawyer" program; $75,000 to Nevada Legal Services; $76,680 to Consumer Credit Counseling Services; and $31,185 to Washoe County Senior Law Project.
"Ask-a-Lawyer" allows homeowners to talk with an attorney about their situation without having to spend thousands of dollars unnecessarily or become potential scam victims, Campbell said.
Nevada Legal Services has scheduled free monthly foreclosure information classes beginning Feb. 8 in English and Feb. 17 in Spanish. More information on the classes is available at www.nlslaw.net.
District Court Judge Elizabeth Gonzales said the mediation grant is a major step toward working with Nevada homeowners to find an alternative to foreclosure and to find good legal help.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
| State | Foreclosure starts | % change | Foreclosure sales | % change |
| Arizona | 119,790 | -18 | 70,588 | -26 |
| California | 338,999 | -33 | 189,810 | -6 |
| Nevada | 86,010 | -19 | 42,828 | -6 |
| Oregon | 24,574 | +10 | 16,781 | +39 |
| Washington | 42,161 | +14 | 25,920 | +14 |
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The gang of bikers comes to town and announce, "We've come for your daughters!" * * * When B of A comes to town, they announce, "We've come for your..." * * * At least , this time...you get to keep your daughters! LOL (kinda)
WAKE UP poor Nevadan homeowners... who are going to loose your home to the "dishonest" Bank of America through a foreclosure. Are you thinking that the Mediation will help you? No, I do not believe so. The process was created so that the lender's benefit is always proctected, instead of the homeowners'.
I'm going to loose my home because of a "formal mediator". They are calling themselves the "formal mediator" (an attorney), because they are there at the Mediation process and "formally" sit at the table... and just listen to what the lender's attorney has to say. These formal mediators usually do not dare to say anything in favor of the homeowners, but to keep silence...since the lender's attorney, who is mostly on the phone taking direct orders from the lender for his decisions at the mediation, does most the talking.
In my case, the lender's attorney said that I am short of $100 for my monthly income, therefore, he finalized the lender's decision on the paper that: "...parties participated, but were unable to agree to a loan modification..." It was not me to not "agree", it was them to decide what my fate was going to be!
They control the mediation, not you. So do not be surprised if you loose!
Anyone Please! let me know if I had another chance for the Mediation, or that was it? Thank you.
If you owned a stock and it went down 50% in value, would you keep it? Ah, maybe-maybe not...What if it cost you $1,500 per month just to have the priviledge of keeping the stock? Would you keep it then?...
Stupid me...this is how they are making money. www.youtube.com/watch?v=HmodOyhAV68
How do you make money on another's loss - with the goober mints bailout funds??? http://www.thinkbigworksmall.com/mypage/player/tbws/23088/
mr(dis)ability, don't you ever get tired? i think you're just jealous that you could never earn enough to afford a down payment and you're pi$$ed that the gov't wouldn't approve a loan modification for your present housing. i mean, what's the going rate on an underpass? to use your favorite expression, lol...
Government Grants, yeah, that's the answer. Bet every lawyer who gets that grant money made a big contribution to the "Re-Elect Harry Reid" campaign.
The sooner Vegas lets market forces work, for good and ill, the sooner Vegas will get back. That includes getting banks to wake up and talk to people (and it should not take the government). I feel bad for people who bought at the top, but I picked up foreclosures in 2010, and now have a good cash flow with good tenants. Once I am done with my "other" job, I will buy again.
you cant afford the stucco shack gtf out
lol
Hpw many more home suckers with crap shacks will be booted out this year?
Housing is a waste of money and you have to pay taxes on the declinin g asset
losers
Does anyone really think the situation in LV is changing becuase of the Make Homes Affordable Program? I have constantly asked readers to step forward if they have been approved for a modification..so far I have had 2 responses and 1 in my opinion didn't exactly qualify as a permanent modification. And also, i beleive the CNN money site has an article right now that LV is still #1 in foreclosures....