Foreclosure Peaks Records

July 15th, 2007 | Tags: Foreclosure

The first half of the year saw foreclosures on a record-breaking spree lashing out at house owners by dashing their hopes. The foreclosure listing numbering 926,000 showed a 56% rise in comparison to the previous year. Since RealtyTrac, based in California starting tracking performances from 2005, this is the highest figure. In California and Florida it was the highest in June 2007. At other place the real estate prices have fallen by 25%. In Ohio and Michigan the situation took a turn for the worse with the automobile industry firing more than 50,000 employees during the last decade.

A hike in 30-year mortgage rates by more than ½% has triggered off foreclosure crisis since May. It is pinching the borrowers with the best credit rating but is choking those in the sub-prime category. The effect is telling on the pool of qualified buyers showing signs of shrinkage. According to National Association of Realtors, foreclosures rose simultaneously with the supply of unsold units. The latter hit a record figure of 4.43 million in May 2007.

James Saccacio, the Chief Executive of RealtyTrac is of the opinion that foreclosure rates in most of the states have gone up substantially in comparison to the figures of last year that is 2006. In June 2007, the defaulting figures jumped to 87% (164,644) in comparison to last year. This is from a seller of foreclosure data from RealtyTrac. The June total was less by 7% from the May. California, Florida, Ohio and Michigan have the dubious distinction of accounting for nearly half the countrywide total in June this year.

National Association of Realtors is predicting that more house owners will be losing their property for another year. This will cause builders to halt their ongoing development work. For the seventh consecutive month this group continued with their negative forecasts saying that the present sale of houses will drop by 5.6%. On the national level the prices of houses in USA will drop by 1.4% this year and further nose-dive in the middle of 2008 because of higher mortgage rates and an excess of properties hungry to be sold. The Chicago group said that the average price of houses was $223,700 in May – a decrease by about 2.1% from last year this time. Nevada became the highest in the foreclosure ratings in June with one down for every 175 homes.

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