Foreclosures Houses in Nevada Mostly Primary Homes

Contrary to the common perception that most foreclosures houses are investment or rental properties, a study of foreclosures in Nevada showed that over 87 percent of foreclosure houses were primary homes.

The study also showed that only 8.1 percent were rental houses and 3.6 percent were investment properties.

A real estate association leader in Nevada said that housing officials who want to solve the foreclosure problem in Nevada should start determining the general characteristics and backgrounds of homeowners losing their homes to foreclosure, including the general characteristics of foreclosures houses.

Obtaining details of foreclosures in the state will help housing officials create home ownership policies that help stabilize the housing sector and help prevent another wave of foreclosure.

In April, Nevada had the biggest foreclosure rate – one unit in every 68 houses receiving a foreclosure action. In May, the state still had the biggest foreclosure rate – one unit in every 64 houses receiving a foreclosure action, and the rate even increased. The state’s rate is over six times the nationwide average foreclosure rate.

The state’s total foreclosure filings in April increased by 111 percent compared to April 2008 while total foreclosure filings in May increased by 83 percent compared to May 2008. With a total of 17,157 foreclosure actions in May, the state is third among states in total number of foreclosure actions.

In April, around 80 percent of pre-owned home sales in the southern part of Nevada were bank-owned foreclosures houses. This high share of foreclosure sales has been pushing down home prices across the state.

The study also showed that over 60 percent of foreclosure homes across the state were formerly owned by married couples and that 24 percent were earning an annual income of $15,000.

Also, over 90 percent of the foreclosures houses were detached single-family houses and 32 percent measured between 1,500 square feet and 2,000 square feet.

Approximately 34 percent of the former owners of foreclosures houses spent more than 50 percent of their family’s monthly earnings to pay their home loans while nearly 24 percent spent around 40 percent to pay their home loans.

Additionally, over 68 percent lost their jobs within the year their houses were foreclosed while nearly 12 percent were hit with unexpected bills.

Lastly, more than 61 percent of former owners of foreclosures houses in Nevada said the kind of home loan they obtained was a key factor why they lost their homes to foreclosure.