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Return of the Las Vegas Foreclosures

By
Real Estate Agent with Keller Williams Las Vegas S.0075212

Las Vegas ForeclosuresReturn of the Las Vegas foreclosures

Over 7 million people lost their Las Vegas home through foreclosure when the Las Vegas housing market collapsed. Now these "boomerang buyers" as they are called, could be back in the Las Vegas housing market within the next eight years, looking to invest in a new home, once again. However, there is no guarantee that this will actually happen, but it could.

 

There is one way to ensure that these "boomerang buyers" would qualify for a new home, after going through foreclosure, and that is to work on repairing their credit. Foreclosure sends out a red flag to creditors and lenders, and especially banks. In Las Vegas, foreclosures are just as prevalent.

 

Contact The Ballen Group at 702-604-7739 if you want to learn more about avoiding a Las Vegas Foreclosure.

 

Can Las Vegas Housing Market Make a Comeback?

Despite the upbeat in home sales in other parts of the country, Las Vegas real estate market still has the worst foreclosure rate in the United States. The metro area is the hardest hit section, and has a reputation of being the worst out of five in the nation. The problem does not get any better as more and more homes enter the market place.

 

Slow home sales and foreclosures affect the production of new home construction, and at the same time it opens the door for potential homebuyers to afford their first affordable home. The crisis that led many homeowners to lose their home begins when they are unable to pay their mortgage. This happens with a loss of income or job.

 

Lenders and banks were eager to make a profit and in doing so, they gave out loans to high-risk borrowers, or approved subprime mortgages. This gave people with poor or extremely low credit scores to take advantage at owning a home.

 

The Main Attraction that Went South Fast

What attracted homeowners was the low-interest rate? As with many loans, the interest rates hardly stay the same, throughout the home buying process. Many loans that were offered were adjustable loans or mortgages, which increased over time. This increase made it impossible for buyers to remain in their home, due to the increase in their mortgage payments.

 

This financing option attracted a lot of predatory lenders, who have been accused of taking advantage of the situation, by not informing buyers of their practices. In other words, many home buyers were not aware of the snare they had fallen into. They were completely blind-sighted.

 

However, there were numerous of investors that placed large sums of money into the housing market, in hopes of making a profit, only to lose money in the end.

 

The Housing Market Now In Las Vegas

In 2014, the housing foreclosure rate for Las Vegas had slowed down significantly. Banks backed off approving homeownership nationwide. According to RealtyTrac, one in every 76 households received some form of foreclosure material in 2014. This number is down by 38 percent, when compared to the foreclosure rate in 2013.

 

The filing included bank repossessions, default notices and auction notifications. In the area of foreclosure, Las Vegas was only one of the five major states with the highest foreclosure rate. In fact, Las Vegas was just behind Florida, New Jersey, Maryland, and Illinois, according information contained in a RealtyTrac report.

 

Foreclosure Facts to Remember

It seems that nationwide, one out of every 118 homes had some sort of foreclosure proceedings. This number is 18 percent lower than the number from 2013.

 

Lenders, creditors, and banks began the foreclosure filings of nearly 9,000 homes in Las Vegas, Nevada. Despite the high number, this number is down by nearly 49 percent from 2013. There were about 4,000 homes repossessed in 2013, which is 37 percent lower than normal.

 

Future Foreclosure Predictions for Las Vegas Housing Market

Zillow predicts that at least ten cities will gain double- digit pricing in 2015, over the next year, and possibly longer. These cities include California, Reno and Las Vegas, Nevada. The housing market is predicted to be somewhat friendlier in terms of lower mortgage rates. If a foreclosure takes place, here are the steps it must follow.

 

Steps in a Foreclosure

The first step in a foreclosure begins when the mortgage payments are not paid. This puts the property in danger of being foreclosed upon. Home buyers will have an opportunity to catch up the payments, before the foreclosure date and regain possession of the property.

 

If a payment is not made, the property is sold at auction. If the bid is not accepted, the property goes to the lender. Some states allow buyers to redeem their property after they have paid all the required fees.

 

Contact The Ballen Group at 702-604-7739 if you want to learn more about avoiding a Las Vegas Foreclosure.

Posted by

Lori Ballen

 
Digital Marketing Strategist
Ballen Brands - Helping Business Professionals Rise Above the Noise.
702.917.0755
 

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