While the entire country is feeling the weight of the foreclosure crisis, no state is experiencing it more heavily than Nevada. Nevada is currently home to the highest foreclosure rate in the nation. The Las Vegas metro area is home to one of the highest rates of foreclosure among metropolitan areas. After heavy investment and rampant development during the real estate boom, the housing market in the state has slowed to a virtual standstill. But despite the market's condition, a new wave of real estate buyers and investors have found a way to save on properties for discounts of anywhere from 10 to 50%, and it's through buying up the surplus Nevada foreclosures.
Foreclosure homes come onto the market after a homeowner defaults on their home mortgage loan. The lender, in order to collect the remaining loan debt, must then schedule a sale of the property and use the proceeds to settle the debt. However, since the property must be sold, and the lender most often only needs to collect a portion of the home's value instead of the full loan amount, they are often sold for way below their actual value. This presents an opportunity for buyers and investors in foreclosed homes.
Interest in Nevada foreclosure listings is subsequently soaring, and as the foreclosure totals get higher, prices get even lower at auction. Keep an eye on this situation if you're an interested investor.
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