Desert Underwater: The Hardest Hit Neighborhoods - 8 News NOW

Desert Underwater

Desert Underwater: The Hardest Hit Neighborhoods

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NORTH LAS VEGAS, Nev. -- There is no bigger challenge in the local housing market than getting the thousands of foreclosures sold. One zip code in particular is most affected.

Banks own more homes in 89031 than any other zip code in Clark County. It's a mix of old and new homes and densely populated.

Map: Hardest Hit Zip Codes in September

Only half of the area's 35,000 residents are employed which has made it tough for many homeowners to pay their mortgages.

According to Foreclosure Radar, In September, 1,723 homes received notices of default which is the first step in the foreclosure process. As of September, banks have taken over one-third of the homes and are re-selling them are a huge loss.

Chart: Clark County Property Values

North Las Vegas has been among one of the nations' fastest growing cities for the last decade and now it's the foreclosure capital with 89031 being ground zero.

"How much lower can we go as far as home values are concerned?"  asks Bill Myers, Caliber Realty Group.

Top 10 Cities with Underwater Homes

A home in the Paseo Del Norte subdivision is selling for $75,000. It's also 15 years old. Most of neighboring homes are short sales or foreclosures listed around the same price. It is Bill Myers' job to sell them.

"All zip codes are challenging. I think the key is not necessarily the zip code, the key these days is the condition of the home," Myers said.

89031 is a prime example. The neighborhoods closer to Craig Rd. were building 10 to 20 years ago. To the north, The Aliante master-planned community went up in 2002. Golf course living used to cost $500,000. The median price is now down to $200,000 or less.

"Very close to where we're standing right now is a guy who has a very good job and he tells me, 'I stopped paying on my mortgage about 10 months ago, he said it's not worth it' and that's the case with several of these houses," said Neighborhood Watch Captain John Jaworek.

For some homeowners it will come down to a decision whether to short sell the home or let it fall into foreclosure. No other zip code has racked up more foreclosures in September.

The average amount owed on a note is $281,000 but are being re-sold at auction for $145,000 which means the lender is losing half its money. Jaworek is trying to stay positive about what has happened in his neighborhood.

"I don't feel too apprehensive about it because it's an opportunity for others to move in and I know they're good people because I've seen these people and I meet them," Jaworek said. "I'm looking at the positive of what's happening in our neighborhood."

 

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