New breaking news on the foreclosure front!
Foreclosures have all but dried up with only 454 now on the market, as of September 7, 2012. This is no doubt because of the recent legislation, Assembly Bill 284, (Oct. 1,2011) that requires lenders produce significant/sufficient documentation before they can foreclose. According to ForeclosureRadar, the number of Notice of Defaults filed in Las Vegas in August this year took a sudden jump to 3,589. It appears lenders finally have some resolution as to how to deal with the new laws.
Above is a graph showing the significant decline in foreclosures over the last many months. It does not reflect this new information, but may be helpful in understanding this phenomena.
In September 2011, just before Assembly Bill 284 took effect, banks were foreclosing on about 3 to 4,000 Clark County properties a month. After the new law took effect, notices of default dropped dramatically to a low of about 800 a month. It had reached the point that most all Notices of Default filed were the result of homeowner’s associations filing for delinquent dues.
Allowing for the process of foreclosure to take place, this dramatic increase in Notice of Defaults should result in some significant foreclosure inventory returning to this market, starting probably next spring. This information will not be lost on sellers currently trying to sell, as this is bad news for them, but very good news for buyers.
