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EDITORIAL
Housing woes
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Foreclosure starts are falling faster than home prices ever did in this years-long economic correction -- and that's not necessarily a good thing.
There were 923 notice of default filings in Clark County last month, down from 1,049 in November, but a fraction of the 5,277 from December 2010.
An 82 percent drop in year-over-year foreclosure filings would seem to be cause for celebration. Are people finding jobs? Have struggling homeowners struck deals with their banks in massive numbers to reduce their mortgage payments to amounts they can afford? Does this mean home values might start to appreciate again?
Unfortunately, the answers to those questions are no, no and no. Foreclosure starts have plummeted because a new Nevada law that requires lenders to prove they have the authority to foreclose took effect in October. Throw in the state's foreclosure mediation process and it now takes an average of 330 days to foreclose a property, up from 260 days in December 2010.
"Nevada's new foreclosure rules appear on track to bring a near-complete halt to foreclosures in that state," said Sean O'Toole, chief executive officer of ForeclosureRadar.com. "The only foreclosures you now have are homeowner association liens. There may be a few others, but as we look through December, the vast majority are foreclosures by HOAs, not lenders."
The state's pre-foreclosure inventory now stands at 21,340 homes, to say nothing of the thousands of other properties in line to receive a notice of default in the months ahead.
Southern Nevada's housing market won't start to recover until the foreclosure inventory is cleared and default rates return to historically normal levels. The massive churning of underwater properties must run its course for values to climb.
But if, as Mr. O'Toole reports, banks have all but stopped foreclosing on houses, the status quo of depressed property values will linger for years.
More proof of the glut of empty properties: Southern Nevada Water Authority chief Pat Mulroy reported this month that 10 percent of the valley's water meters are inactive. Ten percent. That's shocking. But not surprising.
At some point, if the foreclosure process continues to drag, the Legislature might need to revisit the issue to make it easier for lenders to more quickly foreclose on borrowers who don't pay their mortgages. The recovery of the housing market depends on it.
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We're currently in the midst of the greatest mortgage refinancing frenzy of the past 5 or 6 years. Rates are now the lowest they've been since mid to late 2003, I worked with a company called 123 Refinance I refinanced my current mortgage to 3.12% search online for them if you are planning to do refinance.
Fannie & Freddie Cornerstone Of Collapse http://bit.ly/tnpiBN
Let's say you buy stock in Bank of America @$50 per share. The price drops to $5/share. Hopefully, you cut your looses before it bottoms out and put your money into something else.
Is a mortgage the same thing? Hmm. The true damage is being carried out by banks NOT foreclosing on properties, while the home owner lives for free.
Some have done so for up to 3 years! Talk about a windfall, 3 years of saving what is usually your largest bill should get just about ANYONE healthy.
It's just not right, is it?
@JohnF...."Only the injured party has the right to seek legal remedy."....I am prime borrower, paid 20% down payment, have not missed a payment ever...and now my property is worth 35% of what I paid for it..I consider myself the injured party, who do I pursue for my remedy?.....
@Guru, as usual I am right with you on all this.... the honest purchaser, those who continue to pay are the true victims here..and they/we are the ones who will never get help....the system encourages walking away and bankruptcy... what a mess
I bet some of your reading the comments stopped paying your mortgage, although you could afford to pay it or have money or assets available to you to pay your mortgage. Instead, you decided to contribute to the decline in values and economy. Congratulations. You win.
How many deep do-do homes are left? The heard must be somewhat diminished. They's got killed off so fast that they flooded the market on home hides and bones. You can get um fer nothing but they ain't worth enough to pay for the shipping.
The author is probably some creepy Realtor or worse who is not making any sales....boohoo...no one cares..you're in the minority!
gbigs- you are correct. How can an unethical society rebound? When will this unethical society rebound? Answer: when responsibility and ethics are rewarded.
Ann Ominus- the biggest losers are the ones who continue to PAY their mortgage while others have defaulted two years ago, live for Free and then take advantage of laws like this to live for free longer. The law must require residents to put money into a fund.
scapegoating business and banks is childish, and a little dangerous. the banks made these loans in good faith. many do not want to live up to their 'signed' end of the bargain. a society based on dishonesty and deadbeats will not last.