Nevada Has Highest Foreclosure Rate

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IRVINE, CA-Nevada's foreclosure rate ranked highest nationwide in August, taking over the top spot that Florida had previously held, reports locally based RealtyTrac. The state's foreclosure activity spiked 104% during the month, 11% higher than a year ago, with the number of filings at 2.5 times the national average.

As GlobeSt.com reported earlier today, US residential foreclosure filings decreased 2% in August from the previous month and are down 34% from August 2012, reports RealtyTrac. The number of foreclosure starts is down 44% from a year ago, representing the lowest level since December 2005.

The increase in Nevada foreclosure activity was caused by a jump in both foreclosure starts, which rose 226% from the previous month, and scheduled foreclosure auctions, up 96% from the previous month. The only cheerful news about the state's foreclosure situation is that Nevada REO activity was down 1% from the previous month and down 38% from a year ago, according to RealtyTrac.

“The increase in defaults is most likely tied to the implementation of two new laws in Nevada: SB 300, which took effect June 1, and the Nevada Homeowner Bill of Rights, which will take effect on October 1,” says Craig King, COO of Chase International, which covers the Reno and Lake Tahoe markets. “Banks are in the process of interpreting the new laws and making necessary changes in their documentation and have said it will take some months to sort through the changes. During this process, there will probably be significant volatility in foreclosure-related activities.”

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