Foreclosures Skyrocketing

May 19th, 2008 | Tags: Foreclosure Notice

During the first quarter of this year foreclosure skyrocketed to 112% with no signs of respite. This year 155,000 families have succumbed to foreclosures. This means across the nation one out of 194 houses are stained with this ignominy. There are about 650,000 foreclosure postings – the numbers are inclusive of default and auction notices as well as bank repossessions. It marks an increase of 23% from the last quarter of 2007. RealtyTrac released the figures. Numbers have more than doubled since the last year.

In 46 states foreclosures increased as it also did in 90 of the 100 jumbo metro regions. This means that there is no sign of slowing down. Some of the hitherto marginally hit areas recorded landslides in foreclosure numbers. In Connecticut foreclosures tripled compared to the last quarter of 2007. In Massachusetts the jump was by 260%.

Nevada has been worst hit. In the first quarter the foreclosure rate here was 1:54. The largest city in Nevada is Las Vegas. It showed a rate of 1:44.

California too has been a hot target for foreclosures. In the metro regions one house out of every 30 houses are in some stage of foreclosure. This is seven times more than the national average. In the first quarter the worse concentrations of foreclosure are in Riverside and San Bernardino. Here the rate ratio is 1:38.

Of the 20 hardest hit metro regions only two were not included in the Sunbelt. These two were Detroit and Cleveland. Detroit ranks 6th in the rankings. Here the ratio was 1:68. Cleveland’s rate ratio is 1:105.

The point to note is that these foreclosure increases are against a background of hectic prevention efforts coming from all levels – local, state and federal. Hope Now is a coalition group working with lenders, servicers and investors as well as community groups. The Bush government backs it. Hope Now claims that have helped more than half a million foreclosure victims during the first quarter of this year. Many state government have initiated their own prevention programmes and are vigorously enforcing the same in a desperate attempt to stem the tide. Towards the end of March Philadelphia ordered temporary hold on foreclosures auctions scheduled to be held in April. Foreclosures of owner occupied properties will be delayed by this move. The lenders will have to open direct talks with the borrowers. This move is showing results.