Kristine Dugan, ABR, BS, CRS, SFR
Your Resource for All Things Real Estate
Direct Phone: 702-332-7781 :: Email: info@HomeSearchVegasValley.com
Nevada Foreclosure Study Findings
Posted on February 1, 2011
It never ceases to amaze me the lack of options presented to homeowners when facing a foreclosure. Nevada is one of the highest states when it comes to home foreclosures and most people facing the foreclosure process are not presented with the multiple options available to them. Recently, the Nevada Association of Realtors (NVAR) published a report outlining the effects of the local foreclosure crisis and how it has impacted nearly every family, business owner and government entity in the state. If you would like to review the full report, click here. Additionally, Default Servicing News (DS News) wrote an article which summarizes the findings which you can review if you click here. Below is a summary of findings from the report which are both disappointing and startling to me because it is obvious those facing foreclosure are not being properly informed regarding their options.
- 1 out of 70 homeowners in Clark County have received a foreclosure notice.
- Almost 23% of those individual surveyed that have gone through a foreclosure admitted that they "strategically defaulted" or "walked away" from their home.
- Nearly 61% of those surveyed that have gone through a foreclosure had never heard of the government program HAFA (Home Affordable Foreclosure Alternatives).
- Only 3% of those surveyed used and were helped by the Nevada Mediation Program.
- Only half of those surveyed knew that there was a government assistance program that offered an online website that helps provide information for options and solutions to foreclosure.
- There is great frustration and confusion between the homeowners and banks when homeowners are trying to avoid foreclosure. Those surveyed were upset and confused as to their bank's required process and the fact that when they tried to talk to their bank about what to do, they couldn't speak to anyone that was able to take action to assist them.
- Many homeowners were not able to maintain the large, unhealthy sum of money that they were spending on their housing expenses each month (about 65% of those surveyed were spending more than 33% of their monthly income on housing).
- Homeowners facing more than two significant challenges which are outside of their control are more likely to face foreclosure. The four largest significant challenges being (1.) Loss of job, (2.) Unexpected medical bills, (3.) Other addition bills and (4.) Addition to household.
- All income ranges have been effected by foreclosure but those most hit have been within the $24,000 to $48,000 income ranges. The next hardest hit income range was $48,000 to $72,000 per year income.
- According to the Federal Reserve, the average homeowner does not decide to walk away (or "strategically default") until after equity has fallen to a negative 62%.
- About 60% of those surveyed stated that they would have pursued the short sale process if the banks made the process quicker and simpler.
- Nearly 58% of those surveyed stated their bank was not willing to work with them to find a solution.
- Most homeowners turned to their bank for advice (which the bank does not represent the best interest of the homeowner). REALTORS®, foreclosure counselors and financial advisors are the least consulted.
Bottomline is that most homeowners are NOT provided all of their options regarding avoiding foreclosure and the opportunities in place to piece their lives back together after this traumatic experience. The report offers some suggestions regarding solutions which includes lenders being required to contact homeowners to provide them options, simplify the short sale process for homeowners, and for lenders to proactively contact homeowners that may qualify for loan modifications.
With nearly 1 in 70 homes in Clark County facing foreclosure, if you or a friend, family member or co-work is facing this challenging situation, PLEASE, PLEASE contact a REALTORS®, Attorney (Real Estate, Tax and Bankrupt Attorneys to be specific), CPA or foreclosure counselor (if possible, all of the above and multiple professionals in each industry) to seek advice to the options available. The more educated homeowners are as to the process and options, the better equip they are to make the best decision possible for them and their family to overcome this process and move on with their lives. If you are interested in a confidential, complementary consolation, feel free to contact me directly at 702-332-7781.
Comment Posted on "Nevada Foreclosure Study Findings"
1.
Ed Shuman Jr.Posted March 28, 2011 5:06 AM
Ms. Dugan: Your information is most helpful. Most of the recent postings you made reflect a real opportunity for Real Estate Professionals, Buyers and Sellers. Although it does not seem that Sellers are in great shape, when we help them with debt forgiveness through a short sale processit adds directly to their bottom line. Ed Shuman, Broker SMG Realty.
Post a Comment on "Nevada Foreclosure Study Findings"
Return to Website Home
Contributors
Recent Comments
Most Viewed Entries
Search
Subscribe to this Blog
