Foreclosure Upswing

Wisconsin trails behind the average rate of foreclosures in America but in Madison the numbers are going up. In Dane county the first six months of this year there were 440 foreclosures of houses – a five-fold jump over the previous number of 84. In 2005 the number was as low as 14.

It is a shock for lenders who are finding that it is not all one-way traffic. Suddenly their money is blocked. In the state in 2006 there were 5,925 foreclosures, which was an upswing of 63.3% over 2005. The national figure was slightly lower being 55% with 925,986 during the same time span. Till now Dane County was considered to be an oasis. The only consolation is that it is less than the national average. In Wisconsin there was one foreclosure for 422 houses causing it to rank 33^rd in 2007.

The country wide filing rate was one for every 134 houses with Nevada being the worst hit. In Nevada the figures were one per 40 units. In the first six months of this year Nevada topped the list with a double jump and a triple hike over the same period in 2006. Colorado had one per every 60 houses to become the country’s second largest offender. California came third with one for every 69 units. Others among the top ten are Michigan, Florida, Ohio, Georgia, Arizona, Connecticut and Indiana.

In June there was a lull but after that things have picked up again with foreclosures on the rise. It is apprehended that by the end of this year the number will sail through the 2 million mark. This will mean an upswing of 65% year-by-year.

The statistics however does not deter the President of Home Savings Jim Bradley who says his group has not seen an increase in bad loans this year. By and large people are cautious about using their mortgage credit. His firm has also managed not to take the foreclosure path. This was because unlike others they have been conservative in issuing loans.

The media is pointing the accusing finger at the sub-prime lenders as the main culprits for the reigning chaos. The falling property prices are also being felt by the main banks who have large chunks of their loan tied to real estate. According to reliable sources more than 1 million houses from about 2,500 counties are included in foreclosure listings.

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