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High Foreclosure Rates Could Lead to More Defaults in Las Vegas

Posted by: Nate Berg

8 August 2009 - 1:00pm

Willingness to default on home loans has been found to increase in ZIP codes with high foreclosure rates, leaving foreclosure-heavy Las Vegas in danger.

The city also remains saddled with high rates of homes that are worth less than the debt owed on them, leading to an even more default-prone situation for many homeowners.

"Las Vegas, which leads the nation in foreclosures, is vulnerable. The recently released study shows that 17 percent of households would default even if they could afford to pay their mortgage if the equity shortfall reaches 50 percent of the value of their house."

Full Story: Underwater LV homeowners more likely to walk away, study says
Source: The Las Vegas Sun, August 7, 2009
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Can't access the article

Submitted by chrisinsobe on Sun, 08/09/2009 - 04:11.

Can't access this article nor any other from the Las Vegas Sun newspaper. Is it because I'm at a PC in Dubai (and being blocked by the UAE censors for some reason) or are others having the same problem...? This ordinarily doesn't happen with newspaper or magazine stories from here.... I read news from all over the world, usually never any problem. Maybe Las Vegas newspaper has too many escort ads... ? Someone please let me know if others can't access their stories.

chrisinsobe (in Dubai)

I can read it

Submitted by contrarianplanner on Sun, 08/09/2009 - 20:28.

Nothing too shocking: 67% of Vegas homes underwater or will be and debating the point of whether or not they will bail. Once person says they will bail because there is less social stigma and it makes economic sense and another says most will stay because prices won't decrease much further and it's unAmerican to bail on your obligations. It does say something like 26% of these are strategic which means they can afford to make the payments, but think it makes more sense to walk away from an "underwater" house. I would expect a lot more homeowners in LV and even elsewhere to mail the keys in.

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