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Do Banks Want to Foreclose???

Foreclosure Radar, a company which tracks foreclosure filings, has announced the year end numbers for Clark County.  Foreclosures in Clark County have decreased by 57 percent between December 2011 and December 2012.  Homes actually owned by a bank have decreased by over 60 percent.  Here are the numbers provided by Foreclosure Radar for Clark County.

December 2012                    December 2011                Change

Notice of Default                       953                                               982                                    -2.9%

Notice of Trustee Sale              930                                            3,528                                  -73.6%

Back to Bank                              366                                                930                                 -60.6%

Preforeclosure Inventory    12,469                                           21,539                                -42.1%

Scheduled for Sale                   2,174                                            6,828                                 -68.9%

Bank Owned                             3,825                                           9,637                                   -60.3%

Why have the numbers of foreclosures decreased so dramatically?  In part because of the change in the law in Nevada, making it more difficult for banks to file a Notice of Default because they must also file an affidavit stating they have the proper paperwork to do so.  Banks are also using other options, such as short sales and loan modifications.  The cost of foreclosing on a property is high; short sales and modifications eliminate the need for the bank to take ownership of the property.  It may be more cost effective for the bank to allow a homeowner to stay in the home without making payments, but carrying the operating cost of the house until such time as the owner is ready to move out or the bank finally does commence foreclosure proceedings.  The LasVegasHomeSpecialist crystal ball does not foresee a significant increase in foreclosures in 2013.

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