Northern Nevada Foreclosures Keep Coming

The rate of delinquent mortgage loans (those headed for foreclosure) continues to rise in the Reno / Sparks area. In June of 2009, 9.3% of mortgage loans were 90 days or more behind in payments, more than twice the 4.4% in June of 2008. During the same period, the percentage of homes that have gone into foreclosure has risen to 3.3%, up from 1.7% a year ago. Whether they like it or not, many banks are in the real estate business - 42% of local area home sales in June 2009 (252 units) were of bank-owned properties.

While this is distressing if you happen to be someone who has had to vacate a home, it's been something of a boon to home buyers looking for bargains. According to Mitch Argon of CalNeva Realty, bank-owned properties and short sales have made up a significant part of recent sales activity. However, Argon sees the short sale market tapering off quickly as the deadline approaches for first-time home buyers to take advantage of the current $8000 federal tax credit. To qualify, sales must be fully completed by November 30, 2009, and short sales typically take three months to receive approval from lenders.

Speaking of foreclosed homes, I'm pretty tired of banks getting away with letting them go to hell while they spend months fiddling around trying to sell them. They should be required to at least keep the front in decent shape so as to lessen the impact on the neighbors and minimize the chances of vandalism and criminal activity. The house next to mine has been empty for months and would look like an abandonded derelict if I didn't water and mow the lawn, pull the weeds, and generally keep an eye on it. I have no idea who owns it now and am pretty tired of being subjected to the irresponsibility of some anonymous financial institution. Unfortunately, lobbyists for these guys successfully killed a bill in the 2009 Nevada legislature that would have required notices on such properties telling people who the real owner is and who is responsible after the residents are gone.

Sources: CalNeva Realty Greater Reno-Tahoe Real Estate Report, Reno Gazette-Journal.

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