Latest News and Reviews

Las Vegas Foreclosed Homes - A Popular Target For Bargain Hunters

More and more bargain hunters are buying up foreclosed homes in Las Vegas, at a faster rate than in other parts of the United States. US statistics for foreclosed homes indicate that there were over 1 million foreclosure properties recorded in 2008 and Las Vegas continues to record the highest metro foreclosure rate.

In April 2009, 14,073 foreclosure fillings were reported in Las Vegas. Although the figure shows 20% decrease compare to previous month, the city continues to post the highest foreclosure rate among metro areas. It is estimated that 1 in every 56 house in the city received a foreclosure filling in April, which in nearly 7 time the country average.

Las Vegas-based Sales Traq reports that about 2/3 of the sale of local home in March 2009 were for properties owned by banks. These include 2,376 dispositions and 1,846 acquisitions, leaving the number of property still owned by banks totalling 15,954 in March.

There are signs of banks becoming more streetwise as far as REO pricing is concerned.  Below-market value foreclosures are listed to encourage competitive bidding, which results in more offers and a better pricing. The average price of a foreclosure sale in March was $127,500, whereas the same figure for homes not owned by bank was $149,900.

Fifty percent of the country largest banks do not pass the government’s Supervisory Capital Assessment Program - acting as a “stress test”. The president of the investment service Foreclosures.com, Alexis McGee, said that banks will use their available foreclosure inventory to obtain capital. Pricing the homes right can result in incredible deals for consumers on properties owned by banks. McGee added that given the current economic situation in the US, now it the perfect time for buyers to pressure the banks to sell their REO inventory.

Las Vegas REO listings had been on the decline since February, in the wake of certain foreclosure moratoriums enacted by Fannie Mae, Freddie Mac and other major lenders in the country. There was a 5% drop in the beginning week of May compare to the last week of April. This was the first time the number of short sale (10,305) was greater than the number of REO listings (10,281).

With the lifting of the foreclosure moratorium, the nation is on the verge of experiencing a record-breaking number of foreclosures. The so-called “sand states” which include Florida, Nevada, California and Arizona are at the top of the list for foreclosure ratings.