Small drop in Nevada rate for troubled mortgages

The percentage of residential mortgage loans that are delinquent in Nevada dropped a percentage point during the first quarter, but Nevada remains one of the country's most troubled states for past-due mortgage loans and foreclosures, the Mortgage Bankers Association reported Thursday.

The delinquency rate fell 1.08 percentage points, to 10.6 percent, at the end of March, the association said.

However, the association said mortgage delinquency rates normally decline between the fourth and first quarters because of seasonal factors.

The percentage of loans on which foreclosure was started during the quarter plunged by 0.66 percentage points to 2.3 percent, the association said. Meanwhile, the percentage of loans in the foreclosure process dipped 0.8 percent to 9.32 percent.

Nevada ranks third in delinquencies and first in foreclosures started among all states and the District of Columbia, the trade group reported.

Many individuals with home mortgages are "financially and psychologically exhausted," said Tisha Black Chernine, founding partner of law firm Black & LoBello.

They have tired of waiting for a government program or law to deal with the residential foreclosures, she said.

"I think it's going to take another 12 to 18 months to get where we are secure in our property values," Black Chernine said. "As soon as we have real property stability, we'll start recovering as a state."

She observed a temporary reduction of housing supply as lenders slow down foreclosures, because of government pressure to correct past foreclosure- processing problems. Nevertheless, she said the overhang of foreclosed but vacant houses depresses home prices.

But the number of Clark County homeowners receiving foreclosure notices fell dramatically in April, reflecting a regional decline in foreclosure activity at every level, ForeclosureRadar reported.

Notices of default filings in the county fell 18.1 percent from March and 36.24 percent compared with April 2010. Canceled foreclosures were up 69.54 percent over 2010.

The slowdown in foreclosure activity has also slowed the time properties spend in the foreclosure pipeline. The time to foreclose in Clark County now averages 348 days, 56 percent longer than a year ago. Bank-owned properties are taking 183 days to sell, nearly 20 percent longer than in April 2010.

For all of Nevada, notices of default decreased 17.8 percent in April from the prior month, falling to the lowest point seen since ForeclosureRadar began tracking Nevada foreclosure filings in August 2009.

Notice of trustee sale filings fell
23.7 percent month over month. Activity on the courthouse steps was mixed, with sales back to banks down by 2.7 percent. Sales to third parties, typically investors, were up 6.9 percent from March, and up 81 percent from April 2010. Cancellations were 14 percent higher month over month and 69.5 percent year over year.