Las Vegas Sun

November 20, 2019

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REAL ESTATE:

Report: Nevada second in nation for loan delinquencies

New loan numbers issued today show Nevada continued to rank second in the nation in May for elevated levels of home loan delinquencies and foreclosures.

Lender Processing Services Inc. of Jacksonville, Fla., a provider of mortgage performance data and analytics, said 21.8 percent of mortgages in Nevada were delinquent or in foreclosure in May, a performance steady with the 21.9 percent rate in April.

Only Florida had a higher percentage in both months, 22.4 percent in May and 22.3 percent in April.

Nationwide, the average delinquency and foreclosure rate in May was 12.38 percent, up from 12.17 percent in April as normal seasonal improvements tapered off, LPS said.

Besides Florida and Nevada, states with elevated levels of problem home loans in May were Mississippi, Georgia, Arizona, California, Illinois, New Jersey, Ohio and Indiana.

States with the fewest non-current loans were North Dakota, South Dakota, Wyoming, Alaska, Montana, Nebraska, Vermont, Colorado, Iowa and Minnesota.

Florida, Nevada, Arizona and California were among the hardest-hit states as subprime mortgage delinquencies soared when over-heated housing markets collapsed and the national recession got under way in December 2007.

The problem in Nevada has worsened with the dramatic weakening of the construction industry and the recession curtailing visitation to the state's casino resorts. Unemployment is now running at 14 percent statewide.

The latest Standard & Poor's/Case-Shiller Home Price Indices show that, in comparison to other big U.S. cities, home prices in Las Vegas have failed to rebound from recessionary lows. While Las Vegas prices were down 8.5 percent in April vs. April 2009, they were up an average 3.8 percent elsewhere around the nation, Standard & Poor's reported.

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