Las Vegas Foreclosures on the Rise: What Does it Mean for the Housing Market?

When Senate Bill 321 took effect on October 1st, the number of foreclosures in Las Vegas dropped significantly. Senate Bill 321, also known as the Homeowner’s Bill of Rights, placed strict guidelines on bankers and lenders in an effort to provide more options for homeowners to stay in their homes. While banks initially backed off after the bill went into effect, a recent report reveals that foreclosures are once again rising.

Why the sudden increase?

Why are foreclosure rates are on the rise, despite the fact that Senate Bill 321 is in full effect? Experts say that the sudden increase in foreclosures suggests that banks and lenders have found ways around the bill, allowing them to resume going after homeowners. For example, last year a similar bill was passed requiring the country’s five largest lenders to pay a $25 billion dollar mortgage settlement. Lenders who are compliant with the previous bill are exempt from most of the newer laws. In addition, Senate Bill 321 makes exceptions for lenders who issued fewer than 100 foreclosures in the previous year, meaning many smaller banks are also exempt. This leaves a large portion of homeowners who financed their homes with the largest lenders unprotected by the new laws.

How do foreclosures affect Las Vegas real estate?

The rise in foreclosures undoubtedly means a more saturated market, but the news isn’t all bad; for many first time buyers, the influx of foreclosed properties provides an opportunity to own a home that would otherwise be out of their reach. However, buying a foreclosed home is much more complex than buying directly from a seller, since there are often several trustees or parties involved. This means that prospective buyers depend much more heavily on real estate agents to help them navigate the process.

Becoming a successful real estate agent requires an ability to adapt to a constantly changing environment, and a strong support network. To learn more about joining a committed team of real estate agents in the Las Vegas area, contact Elite Realty at 702-498-2626 today!