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Las Vegas foreclosure filings jump again
 
By Brian Wargo / Staff Writer

The number of foreclosure filings in the Las Vegas Valley increased in the third quarter, but Southern Nevada's ranking dropped from No. 3 to No. 5 in the country, according to latest quarterly market rankings report released by Realtytrac.

The Las Vegas market had 14,948 foreclosure filings on 11,482 properties from July to September, the California firm reported.

That's a 29 percent increase from the second quarter this year, and a 200 percent gain from the third quarter of 2006.

Las Vegas had a foreclosure-filing rate of one per 48 households.

Stockton, Calif., was No. 1 in the nation with one filing per 31 households. Detroit; Riverside/San Bernardino, Calif.; and Fort Lauderdale, Fla., followed.

After Las Vegas, rounding out the top 10 were Sacramento; Cleveland; Miami; Bakersfield, Calif.; and Oakland, Calif.

The foreclosure filings include notices of defaults and repossessions of properties.

In Realtytrac's monthly statewide rankings, last reported in October and reflecting September foreclosure filings, Nevada remained first nationally in the number of filings per household. The state has topped the foreclosure filings list since the beginning of the year.

The increasing number of foreclosures has prompted national lenders and asset management companies to schedule an auction of more than 200 foreclosed-upon homes at noon Sunday, Dec. 2, at the Ritz Carlton-Lake Las Vegas.

In August a similar auction held by Hudson & Marshall sold 87 of 90 foreclosed-upon homes in the Las Vegas area.

Dave Webb, a principal with Hudson & Marshall, said the foreclosure filings show no sign of slowing. Investors composed nearly one-third of Nevada's defaulted loans.

"There was a lot of overbuilding combined with investors using risky subprime adjustable rate mortgages to purchase homes," Webb said.

Buyers speculated that home prices would continue to rise and that they could easily refinance or sell at a profit, he said.

"That didn't happen, and now Nevada is overburdened with foreclosed homes," Webb said. "By putting owners into these empty houses, auctions help infuse liquidity and vitality back into the housing market."

The homes on Sunday's docket are valued from $64,900 to $677,900.

The homes will be sold as is, with no back taxes or liens on the properties.

The homes will be open for inspection from 1 p.m. to 3 p.m. Saturday.

Winning bidders are required to make a down payment of $2,500 or 5 percent of the sales price, whichever is greater.

Brian Wargo covers real estate and development for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 259-4011 or by e-mail at wargo@lasvegassun.com.

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