Not Good News

From the Reno Gazette Journal: Foreclosure activity is picking up in Nevada, according to national foreclosure tracker RealtyTrac in its monthly report released Wednesday night.
For the fourth straight month, Nevada had the second-highest foreclosure rate in the nation, with one in every 344 homes having a foreclosure filing, including notices of default, auctions and bank repossessions.
While Nevada’s overall foreclosure activity was down 43 percent from a year ago, the notices of default, or the first step in the foreclosure process, saw a 19 percent increase from December and 87 percent from January 2012.
It is a 16-month high of 1,827 filings, according to RealtyTrac.
The state had 759 completed foreclosures in January.
“That is the (Assembly Bill) 284 effect and National Mortgage Settlement Act combined is what really kept the downward pressure on the (notices of default),” said Brian Bonnenfant, program manager for the Center for Regional Studies at the University of Nevada, Reno. “Over time, it is just natural for these (notices) to be back on the increase because these underwater mortgages don’t just go away and figure themselves out.”
Nevada’s foreclosure activity nearly came to a halt after Assembly Bill 284 went into effect in 2011. The legislation required stricter documentation during the foreclosure process.  http://www.rgj.com/article/20130213/BIZ02/302130134/Foreclosure-starts-spike-Nevada?nclick_check=1
All the Assembly law did was postpone the inevitable. 
The only solution to the foreclosure problem is to foreclose on eligible houses and businesses and let nature take it's course.  Yes, it will hurt in the short term, but it will help the foreclosure crisis in the long term.