Investing in Foreclosed Properties
U.S. Nationwide Trends


Foreclosure starts drop in Nevada

Foreclosure activity in Nevada has slowed to a trickle, likely as a result of a Nevada state law that went into effect in October designed to crack down on documentation irregularities by foreclosing lenders.

In July, Nevada foreclosure starts were down 61.8 percent, to 1,618, compared with 4,235 a year ago. Foreclosure cancellations were down to 800, a nearly 60 percent drop from July 2011, but the number of properties becoming REOs dropped even more precipitously, 77.8 percent, to only 394 properties. The number of properties sold to third parties on the courthouse steps fell 34.4 percent, to 429.

The state’s REO inventory was down 63.8 percent to 5,541 in July with the number of homes in the foreclosure pipeline dropping by more than half year over year. It took nearly 46 percent longer to foreclose on a property last month than it did in July 2011: an average of 471 days — the equivalent of nearly 16 months. Banks also took considerably longer to sell homes once they’d repossessed them — an average 221 days, up from 154 days a year ago. Third parties resold in an average 133 days, up from 98 days.

10 States Still Battling High Foreclosure Rates

Several states continue to be plagued with high foreclosure rates. RealtyTrac reported last week that foreclosure starts rose 6 percent year-over-year, which is the third consecutive month for increases following what had been more than a year of declines.

California has the highest foreclosure rate in the country, according to RealtyTrac, with one in every 325 housing units receiving a foreclosure filing in July (more than twice the national average). California had the highest foreclosure rate in the country despite an 11 percent decline month-over-month and a 25 percent drop year-over-year, according to RealtyTrac.

The states with the highest foreclosure rates in JulyRealtyTrac’s most recent data–are:

  1. California: 1 in every 325 housing units
  2. Arizona: 1 in every 346 housing units
  3. Florida: 1 in every 352 housing units
  4. Georgia: 1 in every 376 housing units
  5. Illinois: 1 in every 385 housing units
  6. Nevada: 1 in every 415 housing units
  7. Michigan: 1 in every 518 housing units
  8. Ohio: 1 in every 528 housing units
  9. South Carolina: 1 in every 536 housing units
  10. Indiana: 1 in every 665 housing units

Source: RealtyTrac

Nevada was home to No. 10 of the top 10 markets with most activity in first 6 months of 2012

Las Vegas-Paradise, Nev. ranked No. 10 of the top 10 nationwide metros with the highest foreclosure activity during the first half of 2012.