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Foreclosure Activity Increases in 45 Out of 50 States

Nov 07, 2007

Foreclosure filings were at an all time high in August and September. Foreclosures increased 300 percent during the third quarter in a year-over-year comparison, with Nevada, California, and Florida posting top foreclosure rates.

According to a foreclosure report released last week by online foreclosure marketplace RealtyTrac, U.S. foreclosure filings reached record levels during the third quarter.

Nationwide, a total of 635,159 foreclosure filings were reported on 446,726 properties-up 99.5 percent compared to the same quarter last year. RealtyTrac estimates that there is one foreclosure filing for every 196 households.

States with the Highest Foreclosure Rates

State	1 Filing for Every # Households
Nevada	61
California	88
Florida	95
Michigan	102
Ohio	107
Colorado	109
Arizona	112
Georgia	142
Indiana	196
Texas	205
Massachusetts	212
Tennessee	216
Connecticut	251
New Jersey	252
Illinois	257

Source: RealtyTrac

Foreclosure activity increased in 45 out of 50 states. Nevada, California, and Florida had the highest foreclosure rates in the third quarter. Filings in these three states accounted for more than 60 percent of the nation's total foreclosure activity.

Other states with foreclosure rates higher than the national average during the third quarter include Michigan, Ohio, Georgia, Arizona, Illinois, and Colorado.

How Foreclosures are Affecting the Housing Market

Although many analysts predicted the foreclosure crisis would be limited to a few states, it is obvious that the problems have become widespread. The Joint Economic Committee recently estimated that U.S. homeowners will suffer $1 billion in lost equity as a direct result of foreclosure auctions.

On average, property values decline 1.5 percent for every one foreclosure within a 1/8 mile radius. In neighborhoods with exceptionally high foreclosure rates, such as Stockton, CA where there is one foreclosure filing for every 27 households, this is a serious problem for everyone--including the homeowners who aren't facing foreclosure.

Downward pressure on home prices has already been observed in many of the nation's largest metro areas. According to the most recent S&P/Case-Shiller Home Price Indices, single-family home prices have fallen 4.4 percent nationwide in a year-over-year comparison. Eight major metro areas (Cleveland, Las Vegas, Miami, Minneapolis, Phoenix, San Diego, Tampa, and Washington D.C.) had the lowest annual returns on record.

Higher than normal foreclosure rates are expected to continue through 2011 as ARM loan resets force more homeowners into foreclosure. The housing market will most likely continue its downward spiral until these rates decline.

Where the Presidential Candidates Stand on a Mortgage Bailout

The housing crisis is a big issue for a lot of voters. Not surprisingly, John McCain and Barack Obama offer vastly different plans to solve it. Let's see where they stand.

Fed Report Shows Americans Have Less Home Equity Than Ever Before

Falling prices are eroding the value of U.S. homes. According to a new Fed report, the equity that Americans have in their homes has dropped to the lowest level on record.

Survey Says Most Renters Won't Buy a Home

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What the American People Think About a Mortgage Bailout

Some politicians are in favor of providing assistance to the millions of homeowners who are facing default as a result of poor decision-making and falling home prices. Others are dead set against it. Let's see where the American people stand.

What Will Happen to Your Money When Your Bank Fails

Small banks and big ones alike are on the verge of bankruptcy, thanks to all of the bad loans that have been approved over the past few years. Although people tend to assume that their money will be safe even if their banks fail, history has shown that this isn't always the case. Find out if your hard-earned cash is at risk.

A Comparison of U.S. Home Prices

When it comes to home prices, location matters. Consider this: a $210,000 home in Atlanta, GA would be worth $1.4 million in Beverly Hills. The same home would be worth $509,000 in Washington D.C. and $207,000 in Phoenix. Find out how much homes might be worth in different cities in this home price comparison.

Three Reasons Why a Mortgage Bailout Is a Terrible Idea

An open letter to lawmakers and taxpayers who think a mortgage bailout is what we need to solve the housing crisis.

Most Expensive Cities and States to Rent a Two-Bedroom Apartment

A national survey found that Stamford, Connecticut has most expensive rents among other U.S. cities. Residents need a household wage of $31.58 to afford fair market rent on a two-bedroom rental unit. Find out which other metro areas and states have high housing costs.

Lenders Giving Mortgage Borrowers Cash for Keys

To get borrowers to leave a house--and leave it in good condition--mortgage lenders around the nation have begun offering cash for keys. Some lenders are paying out upwards of $3,000.