Las Vegas upside down homeowners to recover by 2020? It's plausible

Many Southern Nevada - including Mountains Edge, Summerlin, North Las Vegas, Henderson, Canyon Gate and Spanish Trail - mortgage borrowers are still dealing with the effects of the great real estate meltdown. Short sale has recently become a more acceptable avenue for home loan banks to address the lingering issue of delinquency, giving people a somewhat more palatable way out of a tight spot. Despite that, high mortgage foreclosure filings continue clouding the sandy landscape of Las Vegas valley. The once in a lifetime housing upheaval is by no means over and done with yet.

Sin City's homeowners have watched in horror as property values have taken a perilous plunge over the cliff, slamming them so low that scores are now in negative equity. An altogether regrettable situation. They are now spending quality time wondering about the future of housing here. More specifically, when the underwater label would be ceremoniously blacked out from the local real estate vocabulary.

First American CoreLogic, a real estate research boutique, has taken the brave step of trying to answer that tricky question. It took a close look at ten markets, one of which was Las Vegas, in order to arrive at a time frame when the average mortgage recipient would break surface and again breathe fresh air. It used unpaid principal balances, short-term housing forecasts, a standard measure of long-term value trends, amortization and predictably some other exotic proprietary data to make it happen.

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