Housing Experts Huddled Together to Address the Foreclosure Troubles of Nevada
Housing experts huddled together to address the foreclosure troubles of Nevada. They urged the legislators of the state to pass a law that would lead to encouragement of short sales and provide greater financial help to the house owners who are finding it difficult to cling to their houses.
The panelists of UNLV launched their plan of “Ending Crisis in Nevada”. The group included Barbara Buckely (former speaker of Assembly. She said that the housing situation of the state is improving but there are still many miles to go before one can say that troubles are over.
According to SalesTraq of Las Vegas the number of foreclosures in the valley will be more than 20,000. For the third running year the state ranks first as regards rate of foreclosures. Buckely of Legal Aid Center of Southern Nevada (executive director) said, “We are still in the midst of this, and there’s no relief in sight. Ending the foreclosure crisis is going to be easier said than done”.
Nasser Daneshvary of Lied Institute for Real Estate Studies at UNLV (director) said that it is good news that foreclosure 
number transactions have been going down since 2009 July and that short sale figures are increasing. In a short sale the house is sold by the defaulting house owner, with the permission of the lender, for an amount that is less than the loan due amount. In recent years the sale of foreclosed units formed the bulk of transactions in the real estate market but the percentage had dropped to 40%. Short sales are now taking up 30% of the sales. Daneshvary said, “We should see more short sales and fewer foreclosures during 2011. At least for now, the increase in short sales relative to foreclosure are particularly encouraging”.
Daneshvary is the co-author of a study highlighting the menace of foreclosure concentrations being poisonous for the localities as prices tumble and vacant houses pose danger to the area. The suggestion is that the government should provide encouragement to short sales. Alternatively the option is giving encouragement for reducing the principal and making the monthly payment affordable. The people will then be able to stay in their houses.
In the quarter starting from July 2010 there were 4,690 loans modified in Nevada but only 87 calculating to 1.85% saw reductions of principal informed Daneshvary.
She said that in 2011 the Legislature will take further steps to give protection to the house owners so that they can short sale their properties.
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