Las Vegas, Nevada (including Henderson real estate) currently has the highest rate of foreclosure in the entire country. What is considered to be the metro area of Las Vegas, continues to be considered in the top five worst areas in the nation for real estate. This mortgage crisis is stunting growth in Las Vegas due to the overflow of available homes for sale in Henderson and Las Vegas, Nevada. The surplus of available homes slows down the construction process of new homes in Nevada, and that (in turn) affects property values.
One decent side effect of this mortgage crisis, is that the surplus of available homes in Henderson and Las Vegas is creating more affordable houses in the area for those who, up until now, weren't able to afford local housing. This bittersweet detail helps to soften the blow of the hard-hit local real estate market.
Henderson and Las Vegas homeowners are potentially losing their homes if they are incapable of affording their mortgages. Local lenders and banks had been giving out loans that were less-than-safe to individuals whose credit scores were low. The initial attraction to low interest rates has proven to lead to eventual higher interest rates. Many of the loans given were adjustable rate mortgages (ARMs)- and higher interests rates that deterred timely payments and lead to foreclosures. Many investors were coerced into buying their homes at the height of the real estate market in Las Vegas and Henderson, Nevada, and due to the lack of credible information, later suffered financial loss at the hands of predatory lenders.