The Jan 1 issue of the Northern Nevada Business Weekly came early, leading with a story about foreclosures. The Center for Responsible Lending, a non-profit firm in Washington, DC, estimates that more than 23% of the sub prime mortgages written in the Reno-Sparks area since 2005 are likely to enter foreclosure, ranking us eighth in the nation.
In the article, the Northern Nevada Director of Consumer Credit Affiliate notes that the local center is counseling an average of one family per day facing foreclosure as their adjustable rate mortgages reset. This up from only one or two per month earlier in the year.
Now I don’t know how many foreclosures this may eventually translate into, but from two families a month to one per day needing foreclosure assistance? That’s a 15x increase. The aftermath of the lending bubble remains the wild card in our local housing market.
Josh
Do foreclosed houses typically sell for below market price? Can this potentially kill the resell market?