Up to now it's been the most visible sign of pain in our housing market, but we're now dropping off the list. The state has lost its dubious title as foreclosure capital of the nation, and so has Las Vegas. And look at Reno's very nice tumble, from 8th in foreclosures, to number 73:
REALTYTRAC FORECLOSURE RANKINGS:
2012 3rd Quarter 2nd Quarter
NEVADA #3 #1
LAS VEGAS #25 #1
RENO-SPARKS #73 #8 (down 27%)
At the Reno office of the U.S. Department of Housing and Urban Development (HUD), director Tony Ramirez told us it's "Great news. But it's kind of mixed news as well, because we know AB 284 may have had some impact on the reduction in the numbers."
AB 284 is the new state law that required more paperwork to launch a foreclosure. Once it became law last October, notices of default just nosedived, and foreclosures have stayed way below the line ever since.
At Reno's Keller Williams Realty Group One office, realtor Guy Johnson says the effect has been extreme: "The number of new foreclosure listings that are hitting the MLS is down 79.5% from a year ago." Today, he says bank-owned properties no longer dominate the Reno-Sparks homes for sale listings. "Less than 6% of available listings are bank-owned properties. It used to be 40%. That's huge."
But the drop off in foreclosures is not all AB 284. Tony Ramirez says homeowners lately are keeping up with their mortgage payments. "The real good news out of the whole thing is that the rate of delinquency is starting to slow."
The new numbers are the best news of all to our decimated construction industry, which has been reluctant to build new homes, with foreclosures swamping the market.
Still, the crisis is not over. With unemployment staying high, Ramirez says the stress of paying a mortgage bill is still out there. Too many homeowners still owe more on their mortgage than their home is worth, and there are still too many at risk of foreclosure. If you are having a hard time making your mortgage payments, the Nevada Hardest Hit Fund can help. There's also a loan modification refinancing program. You can connect to both through this link: