Home foreclosure jumps 57 percent
LOS ANGELES (AP) - February 26, 2008 Nationwide, some 233,001 homes received at least one notice from
lenders last month related to overdue payments, compared with
148,425 a year earlier, according to Irvine, Calif.-based
RealtyTrac Inc. Nearly half of the total involved first-time
default notices.
The worsening situation came despite ongoing efforts by lenders
to help borrowers manage their payments by modifying loan terms,
working out long-term repayment plans and other actions
"You have more people going into default and a higher
percentage of the properties going back to the banks," said Rick
Sharga, RealtyTrac's vice president of marketing.
The U.S. foreclosure rate last month was one filing for every
534 homes.
The Cape Coral-Fort Myers area in Florida posted the highest
foreclosure rate of any metro area in the nation, with one of every
86 homes in some stage of foreclosure, said RealtyTrac Inc.
Stockton, Calif., was ranked second, with one of every 97 homes
involved in a foreclosure filing, while the Riverside-San
Bernardino metro area in Southern California had the third-highest
foreclosure rate with filings for one of every 101 properties.
January's tally represented an 8 percent hike from December.
RealtyTrac follows default notices, auction sale notices and
bank repossessions. Lenders typically consider borrowers delinquent
after they fall three months behind on mortgage payments.
Attempts to help struggling home owners have fallen short.
"The loan workout modification programs aren't having a
significant material effect on keeping properties from going back
to the banks," Sharga said.
One dramatic trend last month was a 90 percent spike in the
number of properties that were repossessed by banks, compared to
January 2007.
"It suggests that there's little or no equity in a lot of these
homes, because they're not even being sold to investors at
auctions, and it suggests a continuing weakness in a lot of markets
in terms of real estate sales," Sharga said.
Falling home values and tighter lending standards have extended
the housing slump, making it tougher for homeowners unable sell
their homes or refinance when they face mortgage payments they
can't afford.
A wave of adjustable rate mortgage resets expected in May and
June threatens to push many other homeowners into default.
During the past year, 30 states saw an increase in the number of
homes that had received at least one filing.
Nevada led the nation, with 6,087 properties receiving at least
one filing, up 95 percent from a year earlier but down 45 percent
from December, the firm said.
That translates to a rate of about one foreclosure for every 167
households.
Rounding out the top 10 states with the highest foreclosure
rates were California, Florida, Arizona, Colorado, Massachusetts,
Georgia, Connecticut, Ohio and Michigan.
California had 57,158 properties reporting at least one filing,
the most of any state. The total increased 120 percent from a year
ago and 7 percent from December.
Florida had 30,178 homes on the foreclosure track, up about 158
percent from a year earlier and down 3 percent versus December,
RealtyTrac said.
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On the Net:
RealtyTrac Inc.: http://www.realtytrac.com