Unlike in Detroit where homes had no buyers even if they were being offered below $20,000, many bank-owned homes in Las Vegas do not stay long in the market as investors snap them up quickly.

Thousands of investors in Las Vegas believe that the city will recover and reach again its top ranking in the tourism and hospitality sectors. They contend that the city will be able to maintain enough employment so that the supply of renters does not fall significantly.

Homebuilders have also expressed their confidence in the recovery of Las Vegas in concrete terms by acquiring finished home lots in planned communities. They believe that they can profit from these lot purchases by building new houses in a couple of years.

In Las Vegas, a cheap foreclosed home is typically purchased at one-half or one-third of its price in 2006 and 2007. According to data from the Greater Las Vegas Association of Realtors, the median sales price for an existing home in the city rose by less than one percent to $139,100 in October.

Over the past months, two-thirds of all homes sold in Las Vegas were bank-owned homes, in addition to short sales, which are also becoming more common across the city.

In October, over 3,500 residential properties were sold in Las Vegas, an increase of 5.3 percent from sales in the previous month and almost triple total home sales in 2006.

The continued rise in home sales in Las Vegas is a testament to the belief of local and out-of-state investors in the recovery and growth potentials of the city despite the ridicule it has been suffering from various analysts and think tanks everywhere in the country.

Additionally, some studies on Las Vegas have been discouraging, including a report from Deutsche Bank which estimated that 81 percent of borrowers in Las Vegas have negative equity and that the percentage will soar to 90 percent by 2011. The city’s unemployment rate has also hit a record high of 13.9 percent, leading many to expect more foreclosures.

Despite these negative reports, more and more investors are always on the lookout for another cheap foreclosed home to buy because they firmly believe in the ability of the city to rise up.

In the three-month period ended September, overall home sales soared by 33 percent as sales prices plunged. A total of 44,345 houses were sold during the quarter as the median sales price for previously owned homes dropped to $145,400, marking an overwhelming drop of $40,200 from the price median in last year’s third quarter.

Sales of condo units also soared as the median sales price decreased substantially by $54,000 from last year’s third quarter to $106,100. A total of 14,797 condo units were sold during the three-month period ended September, marking a 56-percent rise from the 9,488 condo units sold during the July to September period last year.

Housing analysts in Florida said that the continued rise in unemployment across the state has been driving more foreclosures and pushing home prices down further. The continued drop in home values has also been forcing many homeowners to deliberately default.

Additionally, the continued filing of foreclosure actions has been hampering efforts to cut down volumes of cheap foreclosed properties for sale in the state. According to realtors, the current supply of unsold housing units across the state is still worth 18 months.

In a foreclosure report released this week, Florida showed a decline in filings in October, but the nearly 52,000 foreclosure actions filed still showed high foreclosure levels. Florida was third among all states in terms of pace of foreclosures.

In Tampa, sales prices for single-family houses dropped by 17 percent to $140,400, down from $169,700 in last year’s third quarter. Prices in Lakeland dropped by 14 percent to $116,800 while prices in Sarasota plunged by 22 percent to $169,800.

Condo units in Tampa had a median price of 103,900, substantially lower by 27 percent compared to the median in the July-September quarter of 2008. Condo units in Sarasota were sold at a median of $162,400, down by 20 percent from last year while condo units in Lakeland were sold at a median price of $73,100, down by 39 percent on a year-over-year basis.

According to economists in Florida, domestic and foreign investors continue to buy cheap foreclosed properties for sale across the state because they see strong and positive economic developments in Florida in the coming years.

Across North Carolina, the foreclosure numbers dropped by 6 percent. However, the number of cheap foreclosed home rose by 51 percent in September compared with the same month last year.

In Rowan County, foreclosures jumped to 105 in July compared with 53 for the same month last year. This rising foreclosure trend has severely affected developers and builders who find it difficult to compete with bargain-priced foreclosure properties and to obtain financing.

Meanwhile, developers noted a change in the types of distressed properties. They said that the foreclosure market is seeing many lots, commercial buildings, developments and subdivisions. They also noted that foreclosure rates in the first quarter of this year decline. However, the numbers started to grow afterwards and have not stopped since.

But industry experts are seeing some improvement on the plight of homeowners. At the Salisbury Community Development Corp., the agency has been helping as many as 100 people monthly. Staff pointed out that many banks and lenders are now doing loan modifications to help troubled homeowners save their properties from foreclosures.

However, experts also observed that many homeowners would delay asking for help until they received a foreclosure hearing notice. Usually, a loan modification process would take as long as five months.

Industry experts are advising troubled homeowners to ask for help as soon as they start missing on their monthly mortgage payments. They said that there is a greater chance that troubled homeowners could save their properties from foreclosure if they sought help immediately.

Meanwhile, experts said that a growing number of rental properties are facing the foreclosure threat. This indicated that the foreclosure crisis is spreading across all spectrum of the housing market. Compounding the problem is the difficulty of developers to obtain financing to continue their projects. Developers said that many lenders do not want to take some risks in the current housing market flooded by cheap foreclosed homes.

Based on a report released by a foreclosure tracking firm, the Reno-Sparks metro area ranked ninth among 203 metropolitan areas throughout the U.S. based on foreclosure rates in the July to September quarter.

During the same quarter in 2008, the Reno area ranked only 19th, with a foreclosure rate of one out of every 66 units. Now the metro area soared to the top ten list, with a foreclosure rate of one out of every 37 residential units.

Housing analysts interpreted the quick rise of the Reno area in the foreclosure charts as a sign of the severity of the housing problem in Reno.

The other large Nevada metro area, Las Vegas, topped the foreclosure chart in the July to September period, with a rate of one out of every 20 units. Over the past 33 consecutive months, Las Vegas occupied the top of metro-area foreclosure charts based on pace of foreclosures. So investors, particularly those living in Nevada, can capitalize on a low-priced foreclosed property on sale in Reno or Las Vegas.

Brian Kaiser, a real estate analyst at the University of Nevada Center for Regional Studies, said that more foreclosures are expected in the Reno-Sparks area in the next several months. During the quarter, actual foreclosures of houses and condo units increased by 39 percent from the second quarter and the number of default notices soared by a staggering 111 percent in the first three quarters of 2009 from the same period last year.

Kaiser explained that not all delinquent borrowers allow their houses to go into foreclosure, but based on past default and foreclosure trends, lots of foreclosures will enter the market in the coming 6 to 9 months.

The university analyst said further that record levels of unemployment and the resetting of adjustable mortgage loans to higher rates are the main culprits for the soaring foreclosures.

In Washoe County, where Reno is located, the unemployment rate in September has hit 13.1 percent, according to UNR economics professor Elliott Parker. Parker added that home prices have plunged to price levels lower than those in the 1990s and in the 1980s because of the low price levels of foreclosed property on sale.

As shown in a recently released report on nationwide foreclosures for the July to September quarter, New Jersey had over 18,000 of its households notified of default and foreclosure. With a foreclosure rate of one in every 193 residential units, New Jersey ranked 15th among states based on pace of foreclosure.

What is also disturbing about New Jersey is the rate of its increase in foreclosure rate. While its foreclosure rate in the July to September quarter was just around one-percent higher than its rate last year, it was higher than the previous quarter by a staggering 44.6 percent. This means that while the state was not significantly affected at the start of the foreclosure crisis, it is now experiencing difficulties that are driving more residents to foreclosure.

Another serious problem that has reached the offices of housing advocates is the unlawful eviction of tenants from foreclosed properties on sale.

According to officials at the Public Advocate Department of New Jersey, they have already helped over 160 renters who were being evicted illegally from properties in foreclosure. Some renters were being notified by bank representatives that they had to move out of the premises immediately while others were being evicted by sheriffs or were seeing their utilities cut off.

There are laws against unlawful eviction in New Jersey, but banks and real estate agents have been successful in evicting renters because many renting families are not aware that anti-eviction laws exist.

To protect renters throughout the state, the Public Advocate Department has launched a statewide campaign to inform renters about anti-eviction laws and their rights as tenants. They are making renters aware that they have the right to refuse coercive methods such as cash-for-keys, particularly if the cash being offered does not even fully cover the security deposits and advance rents paid.

The department has also notified utility companies to continue providing service to renters even if property owners have stopped paying the bills.

Ronald Chen, who became the first New Jersey Public Advocate in 13 years, issued a proposal that would make renters more prepared in case of foreclosure. He recommended that the courts require lenders to notify renters of the pending foreclosure before courts allow the rentals to become foreclosed properties on sale.

VA also noted that because of the high foreclosure activity, the number of military veterans with no home also rose. To prevent the further increase in homeless rate among veterans, VA launched a five-year program designed to alleviate the homelessness problem among veterans. The agency pledged about 3.2 billion dollars to address the problem that has been plaguing many veterans who served in wars in Iraq and Afghanistan.

VA Secretary Eric K. Shinseki explained that no military veterans who served the country should ever be without a roof on their heads. Industry experts said that previous programs of VA focused on helping homeless veterans. However, with the current program, the focus would be in prevention and at the same time, rescuing veterans from homelessness.

Market data showed that out of 24 million military veterans in the country, 131,000 have no homes, with twice the numbers becoming homeless every year. An estimated 3 percent of these homeless military veterans have served in Afghanistan or Iraq. Results of a study conducted in 2007 showed that Afghanistan and Iraq war veterans lost their homes faster compared with other veterans.

Homeless experts and government officials are concerned that the number of cheap foreclosed house for sale in military bases would increase by as much as 15 percent due to the current economic downturn.

Experts said that veterans are one of the sectors in the society badly hit by the recession. And with unemployment rate more than 12 percent now, the prognosis on their situation remains bleak.

The VA has pledged to provide about $400 million to support initiatives that will prevent homelessness. The agency plans to expand its partnerships with the Department of Housing and Urban Development, Small Business Administration and other veterans programs in the federal, state and local levels. VA also plans to help businesses owned by veterans in qualifying for government contracts and overcoming the current economic downturn.

Industry experts applauded the current efforts of the VA to prevent homelessness and the spread of cheap foreclosed house for sale in military bases.

The cities of Covina, Montebello and La Puente passed laws that require banks and other property owners to track and maintain foreclosure properties on their portfolio. City code enforcement workers said that the abandoned home programs are designed to prevent crime in neighborhoods and to keep properties in good condition to attract buyers.

Residents of these cities said that vacant properties are the favorite hung-outs of teenagers who break in and party in them. Sometimes, squatters live in these abandoned properties and strip away everything that they could sell.

Industry experts said that cheap foreclosed home for sale that are not maintained could bring down the entire neighborhood, including pulling prices and values of surrounding homes. City laws require that banks and mortgage lenders notify local governments about the vacant properties and to maintain these houses.

Since Montebello launched its abandoned property program, nine property owners have already registered. Under the program, banks have to pay a registration fee of $120 for every foreclosed property. Property owners should also maintain the foreclosure homes or pay the fine of as much as $1,000 per day that it fails to provide maintenance or repair on abandoned properties.

In La Puente, its abandoned property law aims to make someone take responsibility for the maintenance of foreclosure homes that have been unoccupied for several months. Since the enactment of the program in November last year, La Puente already registered 51 foreclosure houses.

The program in La Puente is proving to be a success because of the cooperation between code enforcement workers and banks to make sure that vacant, foreclosed houses are in good condition and free of transients.

Aside from blights, city officials are also concerned about stagnant water, such as fountains and pools, which could be a breeding ground for mosquitoes.

According to market data, there were 21,850 cheap foreclosed home for sale in Los Angeles County from July to September, an increase from 17,073 reported for the same period last year. Industry experts said that more foreclosures remained unaccounted because banks are delaying making a report of their losses due to delinquent loans.

A grant totaling $1,330,600 has been presented by Lieutenant Governor Brian Dubie as part of the Neighborhood Stabilization Program (NSP). The NSP is funded by the federal government to help alleviate the impact of the foreclosure crisis and boost the immediate recovery of the housing market.

Dubie explained that the federal grant will help build new housing and preserve affordable housing. Additionally, the program will also help the city economy by creating jobs in the area. Industry experts said that the grant will allow the city to create opportunities out of the devastating foreclosure crisis. One opportunity is to provide a chance to low income individuals and families to become homeowners, with stable and affordable financing.

The city has partnered with Champlain Housing Trust to allow homebuyers obtain affordable financing, education and support for sustainable homeownership. According to the plan, nearly $1 million was allocated to purchase cheap foreclosed home on sale which will be renovated to code standards and placed on the market for sale to eligible buyers.

The purchase price is discounted and renovated houses will be sold on affordable rates to buyers earning 120 percent of the median income in the area. The government subsidy will be retained in each home to provide sustainable and affordable homeownership in coming years.

Meanwhile, about $330,600 of the grant will be given to Cathedral Square Corp. to help in redeveloping the Thayer School. The project is designed to convert the vacant property into mixed-use commercial and residential units. The project will provide affordable rental units to both working and older people.

Early this year, Governor Jim Douglas stated that Vermont will sell the property to Cathedral Square. Industry experts said that the NSP funds allowed the city to start immediately the construction of 100 affordable hoses for low income families and seniors.

They added that the project is a significant contribution for the efforts to alleviate the devastating effects of housing shortage in the city. At the same time, it helps the city eliminate cheap foreclosed home on sale which can become blights in neighborhoods.

The most affordable units are being sold at prices starting at $280,000 while units that offer views of the bay and the city of San Francisco are priced from $600,000 through $850,000. One penthouse has been sold for $1.4 million recently.

The 134-unit condo complex, which is adjacent to Jack London Square, was foreclosed by financial firm Union Labor Life earlier this year after the original developers failed to pay their $77 million loan.

After absorbing a loss of $22 million from the loan, Union Labor chose Emerald Fund to take over the condo development and sell the condo units.

According to Oz Erickson, head of Emerald Fund, the condo units are really great buys not only for investors but also for homeowners because the units were built by the original developers as luxury units, but which are now available at substantially reduced prices.

Erickson also added that the quality of the units and the whole building is among the highest in San Francisco. He reiterated that anyone looking for a great property in foreclosure should take a look at units at The Ellington.

After the foreclosure, the building has been attracting attention not only because of the lower-priced units, but because of the expected contribution of the complex to the restaurant, retail and night life of the Jack London Square and the entire downtown.

William Nork of commercial real estate firm Cornish & Carey said he is glad that the condo complex is now achieving some success. He added that the progress of the development will lift all other projects in the area.

In recent years, the city of Oakland has been trying to encourage downtown residential development under its 10K project, which aimed to build thousands of housing units for people that will work and live downtown and will spend their money in shops and restaurants. All these activities were expected to rejuvenate downtown, to encourage the influx of people into the city and help the city more vibrant.

According to Erickson, sales have also been improving because of the approval of its application for Fannie Mae guarantees. Now, anyone buying a property in foreclosure in the complex can get affordable financing more easily.

South Florida is one of the regions in the country that was badly hit by the foreclosure crisis. The crisis brought devastation to the region in the form of record low home prices and values, unemployment and growing number of cheap foreclosed homes on sale.

The foreclosure crisis has brought life-wreaking impact on millions of homeowners. But some entrepreneurs and professionals found ways to turn a bad and hopeless situation into an income generating endeavor.

Some entrepreneurs purchased notes at very low prices and then reducing the monthly mortgages of borrowers to help them avoid foreclosures. Others buy large volume of bargain-priced foreclosure properties.

According to industry experts, the opportunities that came out of the current housing market in South Florida are expected to go on for another two years as the number of foreclosure filings continued to swamp the state’s court system and the number of homeowners losing their jobs is getting high.

Experts pointed out that people who had the inkling of what is going to happen and had bolt out of the market had found opportunities to profit from the foreclosure crisis.

Peter Zalewski, a former journalist, established his foreclosure consulting and specialty real estate firm to help homeowners avoid foreclosures. Three years after he started operation, he already has 36 staff to address cash investors’ growing demand for bargain-priced foreclosure houses.

His story and business operation caught the interest of movie director Michael Moore while he was on the process of making his documentary, entitled “Capitalism: A Love Story.”

Meanwhile, Giving Tree Development’s Jeff Waters buys notes at discounted prices and then reduced the monthly mortgage payments of distressed borrowers to help avoid foreclosures.

He started his initiative last year and soon discovered that it is possible to purchase distressed loans one after the other, rather than buying them in bulk of 200 homes or more. The process involves investors or companies buying a note, then homeowners will be approached and informed that they have a new loan service and will be offered with loan modification.

These are just some innovative ways to help stave off the number of cheap foreclosed homes on sale. The efforts do not result to a dramatic decline in foreclosure rates but combining all the housing recovery initiatives may help make a dent on the continuing problem, experts said.