Nevada replaced Colorado as the state with the highest foreclosure rate in January after an 8% increase in filings from the previous month.
Nevada reported 2,397 new foreclosures in January. The nation as a whole rose 19% in foreclosures, up from the previous month.
Experts seem to agree that the subprime lending was at fault in most of these cases. Loans were given to buyer with no or low down payments and weak FICO scores. These buyers were unable to make the payments of these loans and defaulted. These lenient loans created a huge failure rate that could affect the lending business seriously. Several large companies have been shut down as a result of their lending practices.
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