Foreclosures in the U.S. on the Rise Again

[Sep 17, 2007.]

 

The number of individuals forced into home foreclosure is rising. Statistics show that the foreclosure rate jumped 9% in July over the previous month's totals. When compared with last year, the foreclosure rate is up an astounding 93%.

The highest foreclosure rates appear to have occurred in the states of Nevada, Georgia, and Michigan. The dismal foreclosure numbers are just the latest signs of the declining health of the housing market, which has seen its share of troubles in the past year.

The total number of foreclosure filings rose to an incredible 179,599 in July. The filings involve bank repossessions, default notices, and auction sale notices.

RealtyTrac, the company which released the disturbing findings, noted that just five states accounted for more than half of the total number of foreclosure findings. Those states were California, Florida, Michigan, Ohio, and Georgia.

Nevada's foreclosure rate was a staggering one filing per 199 households. That's three times the national average. Its filing rate rose 8% from June to July. Meanwhile, Georgia's foreclosure rate was double the national average, amounting to one filing per 299 households.

It's unclear whether a single property might have received more than a single notice. Therefore, it's possible that the foreclosure rate is not quite as disastrous as it appears on the surface.

Meanwhile, the housing market is also reeling from the crisis in the subprime loan market. Many individuals were extended subprime loans, even though their ability to repay the loans was questionable at best. Sagging home prices have also caused problems for homeowners, who are finding that resale of their homes is more difficult than ever.

Analysts do not expect the housing market to recover until well into 2008. That means that many home sellers may be struggling for several months to come. So far, the economy at large has not been severely impacted by the current housing crunch.

Julie Ann Amos
September 17th 2007

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