We are all getting enough morbid news via media. But today we had some encouraging news about the Foreclosure picture across the country and what we believe will be a positive impact on Las Vegas Foreclosures. The encouraging news is that banks are finally waking up to the new realities in the marketplace and helping people that are facing foreclosures.
Lender Intervention Helping Las Vegas Foreclosures
Lenders intervened to help prevent 239,000 foreclosures last month, according to a report released this month. This is the fourth straight month where banks have facilitated over 200K mortgage workouts around the US and we would estimate about 5-8% of these are right here in Las Vegas.
Hope Now, a coalition of lenders, investors in mortgage-backed securities and community advocacy groups, indicated this week that December marked the fourth consecutive month that its members had arranged more than 200,000 mortgage workouts.
The December results demonstrate that Hope Now members are moving aggressively to do what’s needed to avoid preventable foreclosures,” said Faith Schwartz, Hope Now’s director. She also credited very low mortgage interest rates, with helping people refinance and stay in their homes. “That’s very helpful for homeowners who have good credit and are not underwater,” she said. “They can refinance into more affordable loans.”
Las Vegas Foreclosure Road Ahead
We are also seeing a steady drop in “toxic mortgages” here in Las Vegas that have been driving Las Vegas Foreclosures – these include hybrid adjustable rate mortgages, so called “toxic” ARMs (“Adjustable Rate Mortgages) et al. This is a good thing as this is reducing our overall rate of Las Vegas Foreclosures, which in turn lessens downward pressure on Las Vegas Foreclosures.
