Nevada suffers setback on foreclosure rate

The grim reality of real estate in Southern Nevada.

Just when it seemed Nevada’s foreclosure rate was improving, the state’s volume of distressed real estate catapulted last month.

Nevada had the second-highest foreclosure rate in the country in October, with 1 in every 352 housing units saddled with foreclosure-related filings, according to a report published today by RealtyTrac.

That’s up 41 percent from September, when Nevada ranked fifth-worst in the country with 1 in 496 homes in foreclosure. At the same time, it was down 47 percent from October 2011, the same month that Nevada’s “robo-signing law” took effect and helped slow the pace of these public auctions.

Florida was the hardest-hit state last month with 1 in 312 homes in foreclosure. Nationally, 1 in 706 homes was in foreclosure, says RealtyTrac.

Nevada led the country in foreclosures for 62 consecutive months until March when it dropped to the No. 2 spot. It reclaimed the dubious No. 1 ranking in April but fell to No. 3 in May.

The robo-signing law, Assembly Bill 284, forces banks to provide more paperwork before they foreclose on homes. Nevada’s foreclosure rate was fifth-highest in the country in both September and August, and sixth-highest in July.

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  1. I am lost here, just how is this a surprise. The legislature stalled foreclosures and now they are catching back up. GOOD!

  2. I have to agree with Longgun here, the foreclosures have still been here just in a state where they weren't complete and open on the market due to paper work.

  3. Nothing to see here folks. Just like the jobless claims SNAFU, the paperwork was withheld/not completed therefore we have people out of work and people working who don' do their jobs. Sound like the Department of Defense? The Office of the Inspector General was found to refuse 90% of the cases they were required to investigate and this truth came to light when Petraeus was caught in criminal activity but not punished because the Statute of Limitations had expired. Must be nice eh?

  4. I'm with longun45 here... just how is kicking the can down the road with the passage of AB 284 in October of 2011 and the inevitable finally taking place any surprise?

    Was everybody all of a sudden going to start paying their mortgages because the foreclosure process laws were changed?

    BTW.... Corelogic has Florida ranked #1 in the % of home loans 90+ days late. Nevada is ranked #2 in the country with about 11.2% of all home loans 90+ days late.

    Get it over with or drag it out.... Either way, I highly doubt the 11.2% of Nevada homeowners with loans 90+ days late are all of a sudden going to cure the defaults and get current.