Leading among all US cities in the third quarter of 2009, Las Vegas boasted 5.13 percent of households receiving a foreclosure filing. That figure is almost seven times the national average. According to RealtyTrac, foreclosure filings in Las Vegas are up 54 percent over last year.

The drawback to banks selling homes through foreclosure, however, is that foreclosed homes usually sell for much less than market value. In fact, more banks are now finding it more within their interest to assist indebted homeowners in selling their homes through short sales. Even though the bank takes part of the hit by this method, in which the home is sold for less than the balanced owed on the mortgage, they still reap more profit in the end due to an overall higher price for the home than they would get through a foreclosure sale, and by avoiding the numerous fees associated with the foreclosure process.

For this reason, some real estate experts are expecting the foreclosure rate in Las Vegas to decline, both due to the recovering economy and the increasing willingness by banks to opt for the short sale option. Rather than going through the time and expense of court proceedings, followed by an eviction and possibly having a house sit and deteriorate as it awaits sale; and the bank won’t lose possibly months worth of mortgage payments.

Until short sales outpace foreclosures, however, many experts are still predicting the possibility of yet another wave of foreclosures to devastate the Las Vegas area, thus leaving many more homes on the market for less than market price.

Make sure to keep an eye on this situation if you’re looking into foreclosed homes in the Las Vegas area.