dcsimg
   Facebook


rebuild.org finance news:

Back to Latest News Headlines

Foreclosures Skyrocket Once Again

[Oct 5, 2007.]

 

The housing market took a substantial hit in August, as the number of foreclosure filings doubled over the previous August's totals. The increase also represents a 36% rise from the July totals.

All told, some 243,947 foreclosure filings were logged in August, according to RealtyTrac Inc., a California-based company. Back in August of 2006, the rate was only 113,300. That means that the foreclosure rate increased a whopping 115% in a single year.

Foreclosure filings consist of bank repossessions, auction sale notices, and default notices. If a single property is held by more than one mortgage, more than one foreclosure notice might have been filed.
The August foreclosure rate is also significant in that it signals the largest number of filings in a single month since RealtyTrac began recording the rate two years ago.

The head of RealtyTrac was quoted as saying that the increase in foreclosure filings is the result of the significant number of adjustable rate loans that are being reset in the subprime market. The collapse of the subprime loan sector has been cited as the major reason for the current housing slump, which has become a nationwide phenomenon.

The housing market is also suffering from the effects of stalled home sales and declining home prices. In addition, many prospective buyers are finding it difficult to obtain loans because of troubled credit histories and tightening loan restrictions.

The highest foreclosure rates are in the states of Nevada, California, and Florida - hardly a surprise to those who've been following recent housing trends.

Meanwhile, bank repossessions skyrocketed to 42,789 in August. In July, the total number amounted to only 26,842.

Other states experiencing high foreclosure rates include Georgia, Ohio, Michigan, Arizona, Colorado, Texas, and Indiana. In some instances, job losses may be driving foreclosure rates upward.

Meanwhile, housing experts predict no relief in sight in the troubled mortgage market. House sales are not expected to pick up until sometime in the next year and a half.

Julie Ann Amos
October 5th 2007

Recent News


  • Consumer Credit on the Rise
    The Federal Reserve is reporting that consumer credit is once again on the rise. The rate of borrowing increased 3.7% in July. Still, the rate of growth was slower than it had been in June, when the rate stood at 5.9%. [5th October 2007]

  • Homeowners Choose Credit Cards Over House Payments
    It used to be that homeowners would make sure they paid their mortgages before they paid any other bills. The thought was that the last thing on earth a homeowner wanted to lose was his or her house. [5th October 2007]

  • Businesses Have a Tougher Time Obtaining Credit
    Small business owners are finding it more difficult to obtain credit these days. In some cases, business executives are being turned down for loans. [5th October 2007]

  • GM strike makes no impact on auto prices
    If you saw the recent General Motors-United Auto Workers strike, and were hopeful that you might see benefits passed on to the end user in terms of discounts. You would be let down. In actuality the two day strike will likely have no impact on car prices or sales. [3rd October 2007]

  • Graduate Student Credit Spending on the Rise
    Credit card use among graduate students appears to be on the rise, according to a study by Nellie Mae, which provides educational financing for college students. [1st October 2007]

  • 30-Year Mortgage Rates Record Significant Decline
    30-year mortgage rates have plummeted to their lowest point since the spring. As a result, homeowners hoping to refinance may finally be able to catch a break on their rates. [1st October 2007]

 

news subscription:

Easily subscribe to the rebuild.org news feed.

Read our news without even visiting our site!

Feedburner
Subscribe to our news

 

news archive:

Rebuild.org monthly news archive