Today’s Bloomberg article Fewer Homes Were ‘Under Water in Third Quarter as Foreclosures Rose focuses on a sad fact: In the third quarter, fewer homes were worth less than the mortgages owed on them because the number of foreclosures has increased, not because property values have rebounded.
Nevada continues to suffer the more than any other state from the housing bust. Two-thirds of homes with mortgages are underwater, and one in 79 households received a notice of default or foreclosure last October in the Silver State.
Last month, when we interviewed eight Nevadans who were over 50 and out of work , we found that four of them had been severely impacted by the decline in the state’s home values. Kimberly Gilek hopes to sell her home soon, although it is worth much less than she paid for it, because she needs the money for living expenses. Albert Yasbick and Mary Sironen are both unemployed and their houses are underwater. They are struggling to make payments and stay in their homes. Anthony Lalos has already lost his home to foreclosure.
“The impact of the recession on Nevada is horrible. There’s just people out of work; people losing their homes. We’re the number one state in foreclosures. Houses all around are sitting empty, and every time I see one, I think of the poor people. Where did they go? What did they do?”