Western States See Big Drop in Foreclosure Sales

Nevada has long held the No. 1 spot for the most foreclosures in the nation. And while it still does, a dramatic shift is taking place in the state. Foreclosure sales dropped 40 percent in February in Nevada, according to foreclosure data of western states by ForeclosureRadar.

Other western states hard-hit by foreclosures are also seeing big improvements in a reduction to foreclosure sales. Foreclosure sales dropped in Oregon by 32 percent, 22 percent in California, 17 percent in Arizona, and nearly 7 percent in Washington.

Nevada has seen dramatic decreases in its foreclosure sales and filings since the state implemented a new law that says lenders can be held criminally liable for any errors made in the foreclosure process. Other states are considering adopting similar measures.

While states have seen a drop in foreclosure sales, some state are continuing to see an increase in foreclosure filings, a sign that the foreclosure crisis is not completely behind hard-hit western states. For example, foreclosure filings increased 39 percent in Oregon and 6 percent in Arizona in February. However, ForeclosureRadar notes that the spikes were offset by steep declines in the month prior.

Source: “Nevada Foreclosure Filings and Sales Plunge: ForeclosureRadar,” HousingWire (March 13, 2012)