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FALLON - While the foreclosure rate of homes in Churchill County dropped from June to July, more homes are being foreclosed this year than in 2008.
Recent statistics on foreclosures in Nevada released by RealtyTrac, a company that follows foreclosures nationwide, show Churchill County ranks sixth in the state. Lyon County holds the top spot, followed by Clark, Nye, Washoe and Douglas counties.
According to RealtyTrac, 56 homes were somewhere in the foreclosure process in Churchill County in July. That translates to one foreclosure for every 194 homes.
In June, 69 homes were in the foreclosure process, and in July 2008 there were seven. That makes a 700 percent increase from July 2008 to July 2009.
In July, Lyon County's foreclosure rate was one for every 39 homes, and Clark County's rate was one for every 47 homes, according to RealtyTrac. The state's average last month was one foreclosure for every 56 homes while the national average was one foreclosure for every 355 homes.
A notice of default is the first step toward foreclosure. About 30 percent of homeowners nationwide are able to catch up on their mortgage payments and get out of default. Following the notice of default there is a notice of trustee's sale.
The process ends with the real estate owned by the bank.
“We're getting a lot of notice of defaults and trustee's sales,” said Churchill County Recorder Vicky Tripp.
The county is not yet feeling the sting from lost property tax revenue, though.
“A majority of properties have a mortgage on them and the mortgage holder will pay the taxes,” said Churchill County Clerk/Treasurer Kelly Helton.
Statewide, 19,535 homes were in the foreclosure process last month, with 16,798 in Clark County and 1,665 in Washoe County, according to RealtyTrac.
Figures released by Bob Getto, a local broker and president of the Northern Nevada Regional Multiple Listings Service board, show that more than half the sales of site-built homes on lots of 2 acres or less since January have been distressed sales or homes somewhere in the foreclosure process.
While he doesn't track the foreclosure rate of manufactured homes, Getto theorized the rate would be lower than for site-built or stick built homes because it's easier to get financing on a traditional stick built home.
Do foreclosed homes spend more time on the market than other homes?
“That's a black and white question with a gray answer,” Getto said, adding it often depends on how the bank prices the foreclosed home.
Banks are federally regulated and cannot own real estate; therefore, they try to liquidate the foreclosures to maintain good standings. Getto said banks typically price foreclosed homes near the existing loan balance.
For example, if a $120,000 foreclosed home has a loan balance of $100,000, the home would be priced between $100,000 and $105,000. Getto said homes like that, or homes with a loan and a second mortgage valued at more than the house is worth, will sit on the market.
However, if that same $120,000 foreclosed home has an outstanding loan balance of only $50,000 and is marketed near that price, it would be snatched up quickly.
Getto said he's seen bidding wars for some foreclosed Fernley homes that were priced competitively. He said those homes are selling above asking price — sometimes with five or six offers — after only two to three days on the market.
In the second quarter of 2009, 40 site built homes were sold in Churchill County, with 12 purchased using conventional loans and 12 purchased with cash. Getto said investors capitalizing on foreclosures usually use conventional loans or cash to purchase the properties, as opposed to FHA loans for first-time homebuyers or VA loans for veterans.
“Based on my research for the National Association of Realtors, I think the foreclosures will keep on coming for a while,” Getto said, adding he thinks it will be another 12 to 18 months before the market straightens out.
However, looking for the silver lining, Getto said now is a good time for people with good credit to buy houses.
“There's a good inventory, a good selection, good prices, good interest rates and tax benefits,” Getto said. “Now's the time to buy; however, you've got to have good credit.”
BREAKOUT
Number of foreclosed homes
July 2008 June 2009 July 2009
Churchill 7 69 56
Lyon 264 328 464
Statewide 10,060 18,764 19,535
* Source: RealtyTrac
Recent statistics on foreclosures in Nevada released by RealtyTrac, a company that follows foreclosures nationwide, show Churchill County ranks sixth in the state. Lyon County holds the top spot, followed by Clark, Nye, Washoe and Douglas counties.
According to RealtyTrac, 56 homes were somewhere in the foreclosure process in Churchill County in July. That translates to one foreclosure for every 194 homes.
In June, 69 homes were in the foreclosure process, and in July 2008 there were seven. That makes a 700 percent increase from July 2008 to July 2009.
In July, Lyon County's foreclosure rate was one for every 39 homes, and Clark County's rate was one for every 47 homes, according to RealtyTrac. The state's average last month was one foreclosure for every 56 homes while the national average was one foreclosure for every 355 homes.
A notice of default is the first step toward foreclosure. About 30 percent of homeowners nationwide are able to catch up on their mortgage payments and get out of default. Following the notice of default there is a notice of trustee's sale.
The process ends with the real estate owned by the bank.
“We're getting a lot of notice of defaults and trustee's sales,” said Churchill County Recorder Vicky Tripp.
The county is not yet feeling the sting from lost property tax revenue, though.
“A majority of properties have a mortgage on them and the mortgage holder will pay the taxes,” said Churchill County Clerk/Treasurer Kelly Helton.
Statewide, 19,535 homes were in the foreclosure process last month, with 16,798 in Clark County and 1,665 in Washoe County, according to RealtyTrac.
Figures released by Bob Getto, a local broker and president of the Northern Nevada Regional Multiple Listings Service board, show that more than half the sales of site-built homes on lots of 2 acres or less since January have been distressed sales or homes somewhere in the foreclosure process.
While he doesn't track the foreclosure rate of manufactured homes, Getto theorized the rate would be lower than for site-built or stick built homes because it's easier to get financing on a traditional stick built home.
Do foreclosed homes spend more time on the market than other homes?
“That's a black and white question with a gray answer,” Getto said, adding it often depends on how the bank prices the foreclosed home.
Banks are federally regulated and cannot own real estate; therefore, they try to liquidate the foreclosures to maintain good standings. Getto said banks typically price foreclosed homes near the existing loan balance.
For example, if a $120,000 foreclosed home has a loan balance of $100,000, the home would be priced between $100,000 and $105,000. Getto said homes like that, or homes with a loan and a second mortgage valued at more than the house is worth, will sit on the market.
However, if that same $120,000 foreclosed home has an outstanding loan balance of only $50,000 and is marketed near that price, it would be snatched up quickly.
Getto said he's seen bidding wars for some foreclosed Fernley homes that were priced competitively. He said those homes are selling above asking price — sometimes with five or six offers — after only two to three days on the market.
In the second quarter of 2009, 40 site built homes were sold in Churchill County, with 12 purchased using conventional loans and 12 purchased with cash. Getto said investors capitalizing on foreclosures usually use conventional loans or cash to purchase the properties, as opposed to FHA loans for first-time homebuyers or VA loans for veterans.
“Based on my research for the National Association of Realtors, I think the foreclosures will keep on coming for a while,” Getto said, adding he thinks it will be another 12 to 18 months before the market straightens out.
However, looking for the silver lining, Getto said now is a good time for people with good credit to buy houses.
“There's a good inventory, a good selection, good prices, good interest rates and tax benefits,” Getto said. “Now's the time to buy; however, you've got to have good credit.”
BREAKOUT
Number of foreclosed homes
July 2008 June 2009 July 2009
Churchill 7 69 56
Lyon 264 328 464
Statewide 10,060 18,764 19,535
* Source: RealtyTrac
