Nevada’s foreclosure rate inched higher last month, giving the state a one-notch boost in its ranking among America's worst-hit states.
Nevada was fifth-worst in the country in August for its volume of distressed real estate, with 1 in 402 homes in foreclosure, according to a report today from Irvine, Calif.-based research firm RealtyTrac. The state was No. 6 in July with 1 in 415 homes in foreclosure.
Illinois took the dubious No. 1 position last month with 1 in 298 housing units in foreclosure. It was followed by Florida (1 in 328), California (1 in 340) and Arizona (1 in 360), says RealtyTrac.
North Dakota ranked 50th last month, with 1 in 317,498 homes in foreclosure.
Nevada’s foreclosure rate rose 3.3 percent in August as compared with July, helped by a 40 percent increase in “foreclosure starts” — new notices of default or foreclosure sale notices.
Yet the overall foreclosure rate was 70 percent below August 2011’s figure.
This can be attributed in large part to the state’s “robo-signing” law, which has caused foreclosure sales to plummet.
Under the law, which took effect last October, banks can start foreclosure proceedings only after filing a signed affidavit that says the lender has firsthand knowledge of the mortgage documents.