Homes And Foreclosure

June 23, 2008

73,000 homes lost to foreclosure in May

California, Nevada and Florida continue to outpace other states in the number of foreclosures as 73,000 more Americans lost their homes in May a 158 percent increase from May 2007.  Foreclosure filings jumped 7 percent from April and were 48 percent higher than a year ago.  May was the twenty-ninth consecutive month of increases, according to RealtyTrac.

These are populous states - could that be one of the reasons the numbers are larger?  The statistics show that the foreclosure rate is still less than two percent of the mortgages.  Did the people really lose their homes - or were they buying properties as investment tools to ‘cash-in’ on the market?

MAKING SENSE OF THE STORY

·    20,000 California homeowners lost their homes in May and 72,000 mortgages were at some stage in the foreclosure process.  That means one of every 183 California households was affected in May, putting California right behind Nevada, with one out of every 118 households affected.

·    Nine of the 10 most affected cities were in Florida or California.  Topping the list was Stockton, with one in 75 households affected by a foreclosure filing.  Merced ranked third, Modesto was fourth and Riverside was fifth.

·    RealtyTrac expects foreclosure rates to continue to rise as Alt-A adjustable rate mortgage (ARM) loans originated during the waning months of the real estate boom begin to adjust upward. 

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Posted in Lending, Real Estate