Foreclosure Intensity

May 5th, 2008 | Tags: Foreclosure

According to figures released by RealtyTrac the foreclosure intensity in the first quarter was grave with a jump of 112% in the first quarter. By foreclosure all the stages are referred – default and auction notices as well as bank repossessions. The number of foreclosures across the country reached 649,917 from January to March 2008. In 2007 during the same quarter there were 306,722 foreclosure postings. It calculates to a 23% hike from the fourth quarter of the previous year. During the first quarter one out of 194 houses were in foreclosure.

Nevada ranks first among the 50 states. Here in Nevada one out of 54 houses during the first quarter were in foreclosure. This calculates to 3.6 times higher than the national median. In Nevada 19,595 foreclosure postings were reported.

California ranked second with 169,831 foreclosure listings – this figure being the highest among all the states. It meant one out of every 78 houses in California were in foreclosure during this time.

Arizona came third during this quarter, with 27,404 slipping into the foreclosure net. It meant one out of every 95 houses were in foreclosure in Arizona during this third quarter. It calculates to a 245% increase from the first quarter of the previous year and 45% increase from the last quarter of 2007.

Year-over-year foreclosure activity went up during the first quarter of 2008 in 46 out of the 50 states and in 90 out of the 100 jumbo metro regions of US. Thus the overall picture is dominated by foreclosures being in an aggressive mood.

Experts advise that more should follow the path shown by Philadelphia in containing foreclosures. During March the city of Philadelphia put a freeze on foreclosure auctions scheduled for April. Moreover it was ruled that foreclosures could only proceed after the owners had directly talked with the lenders to work out a mutually affordable settlement. Those criticizing this move opine that it will only postpone the problem but not solve it. The long-term result will be that this pause will be followed by an onrush of foreclosures worsening the scenario. The leveling of the real estate market will also be delayed – thus affecting the general economy. For seven consecutive quarters the property market has been running downhill – this being the latest.

Foreclosures are not just figures and statistics but affecting the lives of everyday people. This translates into grave national disorders touching all aspects of society and the economy.