May's Foreclosures Are In Full Bloom

[Jul 30, 2008.]

 

The declining U.S dollar and the country’s weak job and housing market is to blame for the current world wide economic situation. To illustrate how the economy has yet to stabilize reports are showing that over 70,000 homes fell into foreclosure for the month of May alone.

This number is a another huge blow to an already shaky housing market that has seen a record number of foreclosures in the past year. May was yet another month where foreclosure numbers far exceeded the numbers for the same time last year; month number 29 in such a trend.

73,000 homes fell to foreclosure with Nevada, California, and Florida leading the pack. These three states have continued to be the hardest hit by foreclosures which are not expected to even out until at least the later part of 2009. This number is a 159% increase from 2007 and the numbers are only going to get worse according to several industry experts.

With Nevada being the worse of the worse, foreclosures are hitting one out of nearly 120 homes and have risen 24% since April. California and Florida are close behind.

Adjustable Rate Mortgages are expected to reset sometime in the fall. ARMs are among the leading reason that several home owners have fallen into foreclosures. ARMs have a low interest rate for the first few months before resetting at higher interest rates causing many owners unable to meet the new payments.  These ARMs have lead many sub prime borrowers, or those with less then perfect credit to default on monthly payments which triggers the foreclosure process.

With the resetting ARMs the housing market is going to suffer more foreclosures and even owners who walk away from their homes since it is no longer worth it to stick around.

While there are several organization and associations that try to help distressed home owners there are those who just do not seek out this help and wind up loosing their homes.