Reno, NV (PRWEB) October 29, 2013
The global recession is clearly having an impact on homeowners nationwide, but the rate of foreclosures in the state of Nevada is particularly troubling.
In the previous month alone, the rate of homes in pre-foreclosure status has increased by a staggering 225.8%, according to data provided by RealtyTrac. This increase has caught the attention of USA United Cash Loans, whose representative believes this is the beginning of a dangerous trend.
“When we see a spike in the amount of pre-foreclosures to that degree, it is emblematic of a larger problem. It is likely that Nevada will not be the only state that sees an increase such as this,” said the representative from USA United Cash Loans.
When a home goes into the status known as pre-foreclosure, it means that the homeowner has defaulted on three consecutive payments and is in the process of being foreclosed upon. Since the bank must take a number of steps before the home can be considered a foreclosure, the time in between the default and the official foreclosed status is referred to as pre-foreclosure.
“A pre-foreclosed home almost always reaches foreclosure,” said the representative. “It is very rare that a homeowner is able to get out of that pre-foreclosure status before reaching foreclosure.”
Economic instability is often the root of these foreclosures, and while some buyers see a foreclosure as an opportunity to buy cheap property, others see it as a warning sign. The USA United Cash Loan representative agrees with the latter, saying, “I think the more common perception is that an uptick in foreclosures means trouble on the horizon. Homeowners who are not facing foreclosure may fear that with the economy in a downturn, they will not be able to afford their payments, leading them to spend less on other goods and services. When they spend less, that hurts the economy even more, causing an endless cycle of recession.”