Nevada still in top 5 for foreclosures
Nevada couldn’t escape its foreclosure quagmire in the first half of 2014.
New numbers from California research firm RealtyTrac show the state remained ensconced in its now-normal position among the top five states for default activity. The stats also reveal just how much Nevada’s whipsawing foreclosure laws are drawing out a full housing recovery.
Start with how Nevada fared for delinquencies. The state ranked No. 5 for its foreclosure rate in the first six months of 2014, with one in every 138 homes — or 8,504 units — in the default process. Florida topped the list, at one in every 74 homes. Also in the top five were Maryland, Illinois and New Jersey.
Foreclosure starts, which initiate the default process, were up considerably in Nevada, jumping 66 percent from May to June, to 609 units. Starts were also up 56 percent from a year ago, following seven straight months of declines.
The rising tide of starts hasn’t helped move along the foreclosure market.
Blame a series of state laws that have caused confusion for banks, RealtyTrac vice president Daren Blomquist said. Legislators tightened foreclosure standards in 2011, eased them in June 2013 and strengthened them again in October, with the Homeowners Bill of Rights.
The resulting uncertainty may be reflected in foreclosure times. The average period it takes to foreclose in Nevada was 494 days in June, up from 420 days a year ago and 140 days prior to the housing crisis, Blomquist said.
That’s a problem because the delay is “causing confusion for the foreclosure industry, resulting in a backlog of delayed foreclosures that will eventually push through the pipeline,” Blomquist said.
“Unfortunately, the never-ending saga of the foreclosure crisis is still not over for the city,” he added.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com. Follow @J_Robison1 on Twitter.