(LAS VEGAS CBS KXNT)  Nevada holds the top spot on a list of states with poor credit conditions, according to CardRatings.com.  The rating considers bankruptcies, unemployment, and credit scores.

It’s not hard to explain, says Jeremy Aguero, Principal Analyst at Applied Analysis, a Las Vegas consulting firm. When the economy crashed, Nevada was uniquely positioned to feel the pain.

“During the runup in the economy, nowhere in the United States was building more houses, more office buildings, industrial complexes, or hotels and casinos,” Aguero told KXNT.

Then the bubble burst nationwide, and Nevada was hard-hit.

“What we were left with was the highest rates of foreclosure, bankruptices, short sale, housing price declines, and substantial debt being laden onto businesses and individuals.”

But the state government may also have exacerbated the problem, notably with the law known as A.B. 284, the anti-robo signing law that’s chilled the rate of foreclosures in Nevada.  The law provides an incentive for homeowners to stay in a house they aren’t paying for, Aguero told KXNT.

Foreclosures in Southern Nevada have slowed from 3,000 per month, to 300 per month, a 90 percent decrease.  As delinquent mortgages languish, the owners’ credit scores erode, Aguero said.

With the bad job market and legislative interventions, it’s not surprising Nevada’s credit conditions are substandard, he said.

Also in the top ten for poor credit conditions are neighboring states Arizona and California, and Florida, which enjoyed a housing boom similar in magnitude to Nevada’s.


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