Even though the state of Nevada’s foreclosure volume dropped 22 percent in February compared to the previous month, the state still held firm at the top of the country’s foreclosure filing rate for the 50th straight month[1]. One in every 119 homes in the state is in foreclosure according to RealtyTrac. To make matters look even bleaker, experts believe that the improvement in foreclosure numbers seen in the past few months are likely more of a result of lenders being more tentative about filing for foreclosure because of robo-signer fallout than an actual improvement in the numbers of delinquent loans. In fact, according to some analyses, nearly one in three homeowners in default have not made a mortgage payment in two years, while another 17 percent have not paid in 18 to 23 months[2].
Interestingly, some analysts believe that this long-term default could be a “boon to the economy” as it has freed up money for spending. This seems to be specious reasoning, however, since lenders are taking a serious hit and the market state requires constant Fed intervention.
What do you think about these numbers? Should people who are not paying be permitted to stay in their homes long-term?
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[1] http://www.rgj.com/article/20110309/BIZ/110309061/0/TT/Nevada-No-1-foreclosures-50th-straight-month?odyssey=nav|head
[2] http://www.favstocks.com/nearly-13rd-of-home-owners-in-the-u-s-in-default-have-not-made-a-payment-in-2-years-a-boon-to-the-economy/2939659/
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