Nearly One in Four Nevada Foreclosures Strategic

January 25, 2011 No Comments »

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Nearly a quarter of Nevada foreclosures were “strategic,” according to a study conducted by the Nevada Association of Realtors.

The analysis of the Nevada foreclosure crisis, titled, “The Face of Foreclosure,” found that 23 percent of those surveyed stopped making mortgage payments, even though they could.

This counters recent claims from a pair of BBVA economists, who argued massive strategic default wouldn’t occur in the United States.

The Spanish researchers noted that negative equity alone wasn’t a sufficient condition for default, adding that the value of homeownership went beyond home equity, as borrowers see value in location, living space, safety, access to education, ethical values, and so on.

Perhaps much of Las Vegas doesn’t offer the aforementioned any longer?

The report also found that 61 percent of respondents said they had never heard of the Home Affordable Foreclosure Alternatives (HAFA) program, and only three percent said the Nevada Foreclosure Mediation program assisted them.

Additionally, less than 50 percent of respondents were aware there was a federal website for foreclosure assistance, and many complained that it was difficult to get in touch with their banks and mortgage lenders for real help on their mortgages.

Nevada has consistently led the nation in rate of foreclosure, with more than nine percent of housing units (one in 11) receiving at least one foreclosure filing in 2010, per RealtyTrac data.

Las Vegas is the worst metropolitan area in terms of foreclosure filings as well…

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