Las Vegas was home to a booming housing market during most of the 1990s and early 2000s, all of which came to a crashing halt during 2008 with the collapse of the mortgage market due to unwise borrowing and lending practices. This has led to a skyrocketing foreclosure rate among people living in Las Vegas, with many people now finding the city to be well beyond their financial means. While unfortunate for many homeowners, who will be evicted, it nonetheless offers opportunities for new homebuyers, by putting many bank-owned houses onto the market and making them available at low prices.

For those who are being foreclosed upon, it is important not to panic. Banks are often willing or required to negotiate terms, and many lawyers are willing to assist lenders. Many of these loans were not only bad for the borrower; they were bad for the lender in that they were poorly worded and poorly executed by the third party working for the bank. This allows homeowners to fight back against the paperwork in many cases, and is reason enough for those being foreclosed on to hire a lawyer. At the very least, it may be possible for them to determine that they are better off walking away from the home and purchasing a cheaper one and they may be able to fight for their right to retain the house in court.

As for those looking to purchase, bank owned homes are almost always much cheaper than other homes on the market, and their price can often be aggressively negotiated downwards. This comes with one important caveat, however, and that is that most bank-owned homes are very poorly maintained. As they have not been occupied for an extended period, small problems that would have been fixed by homeowners may have become serious. It is therefore important to examine the property for vandalism, theft, and structural damage before extending an offer.