Nevada back in the hole of foreclosures
LAS VEGAS - Signs of "foreclosure" and "owned by bank" are still common throughout Sin City, and some parts of Nevada, as the silver state is once again taking the lead as the nation's highest in foreclosures.
Realtytrac.com, a website of foreclosure listings, reports that the state of Nevada has an average foreclosure rate of 28 percent that is higher than the national average of 1 percent. The unemployment rate is at 9.9 percent.
The website added, "the national median sales price in August was $175,000, up 3 percent from the previous month and up 6 percent from a year ago — the 17th consecutive month where median home prices have increased annually nationwide".
Las Vegas ranked the third highest in foreclosure rates among metropolitan areas with one filing for every 323 units.
Now, the Nevada housing market credits the new law, SB-321, that will take effect this coming October, for becoming the doorway that leads to dry land for homeowners who have been underwater.
A Filipino, who did not want to be identified, said that the new law should have taken effect at the time they were facing foreclosure three years ago as they too became a victim of the mortgage meltdown.
"I wish they have all these laws during the time I was facing foreclosure. I could've saved my house. During that time, I tried to refinance but they won't let me," the kababayan said.
Realty experts said that this new law will further constraint the current low home inventory while putting more pressure on prices.
"In a nutshell, the banks are basically required to offer the homeowners, our kababayan na having trouble, alternative than foreclosures. SB-321 is basically a carbon copy of the Homeowners Bill of Rights that took effect in California," said Ernest "Che" Bendicion, a realty estate broker.
Bendicion added that kababayans who are facing foreclosures must face their lenders for alternative solutions.
"Another thing that is important on this bill is what they call dual tracking. The banks and the lenders will have to act in good faith and deal with you. If you are doing a loan modification, they cannot foreclose on you until the loan modification process is done. If you are doing a short sale they cannot foreclose on you. They need to work with you in short selling your home. Many times kasi, ang nangyayari, while you are doing your short sale, your loan modification, the banks foreclosure department are still trying to foreclose on you. This is really a big relief in this law," he said.
While many homeowners are anticipating for this week's announcement of the introduction of SB-321, everyone who is under pressure can now weigh in on exploring their options in saving their home.