Nevada Counties Hold On as Foreclosures Continue to Give Beating

by Simon Lindsay on States

The state of Nevada ranks the highest in the nation for foreclosure rates. Nevada foreclosures have a rate of 1 out of 74 households, with Lyon County leading the state with the highest foreclosure rates.

The county was once Nevada’s fastest growing areas in terms of population, but the now the streets are lined up with vacant homes and empty storefronts as one out of every 30 families lost their homes to foreclosures. This is equivalent to 571 foreclosed homes in October alone, which is up 716 percent from September and a staggering 1,293 percent from the same period last year.

Businesses have also been hit hard as a result of this wave of Nevada foreclosures. No commercial or residential development is being built and all development projects are put on hold. Small entrepreneurs like coffee shops, stores and other business establishments were also affected by the situation, as their customers lost their homes to foreclosures and left the town. Other residents would just come in to visit without buying anything for lack of funds.

The utilities department of Lyon County is having a hard time dealing with these issues on foreclosures. Getting funds only from user fees, the staff could not decide on whether to turn water off to abandoned homes or leave them on. They are currently working their way around this predicament by working with realtors and leaving the water on.

In other counties, stricter measures are being implemented wherein utilities will remain off unless banks or realtors would pay for it. The utilities department has already lost $400,000 from their targeted $4 million in revenues due to this crisis.

Unless help comes, the county will be in for a lot more hardships. The expected funds from the Neighborhood Stabilization Program will go to homeowners in danger of foreclosures, while the rest will rehabilitate flood-damaged homes. The county is expecting the funds to arrive in February or March. In the meantime, residents are just hopeful that things will finally turn around for the better.