Drop in Nevada Foreclosures and Rise in Sales Raise Hopes

by on States

The drop in Nevada foreclosures in May and the rise in house sales in June are raising hopes of recovery in the state. The millions in federal financial assistance to Nevada, the improving reviews of the economic situation, and the low tax burden in the state are some of the other positive factors helping Nevada.

Bank owned foreclosures fell in number in May to 3,763 units, down by 8.13 percent from 4,096 in April. Total foreclosure filings, which include bank owned units, also dropped by 11.54 percent to 14,346 units from 16,217 in April.

Although Nevada still topped the state foreclosure rate chart in May, the slowdown in foreclosures both on a year-over-year and a month-over-month basis was good news to Nevadans. It meant that efforts to prevent further foreclosures have been making a dent, although at a slow pace.

In the Home Affordable Modification Program report issued by the Treasury Department for the month of May, thousands of Nevada foreclosures were prevented as 12,150 mortgages were put into active trial modifications and 9,305 mortgages moved on to permanent modification status through May. The 21,455 total accounted for 2.7 percent of all trial and permanent mortgage modifications in the country through May.

It is inferred that a number of BofA foreclosures in Nevada were also prevented, as Bank of America, the nation?s largest mortgage lender, has put 62,969 mortgages nationwide into permanent modification status through May. The bank has extended 403,384 trial modification offers, the highest total among lenders, and has started 308,527 trial modifications. As of May, there are 142,824 mortgage loans in active trial modification status.

The rise in home sales in June was also encouraging, as the 3,369 homes sold in Southern Nevada marked a 16.5-percent increase over the month. The price effects, however, of foreclosure homes listings, are still felt because the median sales price in June decreased by 1.4 percent to $140,000.

Nonetheless, the slowdown in Nevada foreclosures in May is expected to eventually improve home prices.

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