Nevada's foreclosure rate soars in August - FOX5 Vegas - KVVU

Nevada's foreclosure rate soars in August

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LAS VEGAS (FOX5) -

Nevada is once again the foreclosure capital of the country, according to the latest figures from real estate research firm RealtyTrac.

August saw a 226 percent increase in default notices compared to July. The firm's hard numbers suggest 1,419 filings, with Clark County making up 1,125 of those. But the numbers are actually higher, according to attorney Jamie Cogburn

"There are about 700 filed by HOAs, and the HOAs are trying to squeeze in their stuff before the new law takes effect in October," he said.

The new law is the Homeowners Bill of Rights, which replaces Assembly Bill 284, which brought the foreclosure rate down to a trickle after banks were caught in a robo-signing scandal.

AB284 was phased out on July 1.

In August, the banks started rolling out their foreclosure notices.  Dave Tina, president of the Greater Las Vegas Realtors Association, believes the banks are filing against homeowners who took advantage of the loopholes in AB284 and stopped paying their mortgages while living in their homes, some for up to five years.

"If they don't go after them now, it may be a few years more, so I think that's what they are going to go after," said Tina.

Cogburn thinks otherwise.

"I think they'll be going after the person who is newer, meaning they just started to be delinquent. The reason is  if they haven't done it after three or four years, they clearly have an issue that they don't have the proper paperwork," he said.

Universal Realty broker Scott Beaudry believes when the new Homeowners Bill of Rights goes into effect, the foreclosure process will drastically slow down once again as banks and mortgage companies assess the changes.

His advice for delinquent homeowners is to contact the bank.

"Even if a notice of default has been filed contact your bank. They will still talk to you, they will still work with you, as long as you are in contact with therm," he said.

Meanwhile, both Tina and Cogburn believe that September will have even more notices of foreclosure filed statewide.

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