National Foreclosures Increase 17 Percent in Third Quarter According to RealtyTrac(TM) U.S. Foreclosure Market Report Posted on : Mon, 30 Oct 2006 14:08:00 GMT | Author : RealtyTrac Inc. News Category : PressRelease RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure and foreclosure properties, with nearly 650,000 properties from more than 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate, The Wall Street Journal's Real Estate Journal and Knight Ridder Online. "Higher interest rates and a general softening of the real estate market are the two key factors contributing to the 43 percent increase in foreclosure filings from the third quarter of 2005," said James J. Saccacio, chief executive officer of RealtyTrac. "What our third quarter research appears to be showing is that the first wave of adjustable rate mortgages is having a negative impact on the number of homes going into foreclosure. With the volume of these loans -- more than $1 trillion of them due to adjust over the next 15 months -- this is a trend that definitely bears watching." Colorado, Nevada, Florida post highest quarterly foreclosure rates Colorado posted the highest foreclosure rate in the nation for the second consecutive quarter, reporting one new foreclosure filing for every 127 households -- 2.9 times the national average. After declining almost 13 percent between the first and second quarter of the year, foreclosure activity in the state was back up 24 percent from the second to the third quarter, with 14,374 properties entering some stage of foreclosure -- the eighth highest foreclosure total in the nation. Nevada moved up from having the sixth highest rate in the second quarter to the second highest rate in the third quarter, reporting one new foreclosure for every 156 households -- 2.3 times the national average. The state reported 5,561 properties in some stage of foreclosure during the quarter. Florida, which had the ninth highest foreclosure rate in the country for the second quarter, took over the No. 3 spot from Texas during the third quarter, reporting one new foreclosure for every 182 households -- almost twice the national average. With 40,136 properties in some stage of foreclosures during the quarter, the state reported the highest number of foreclosure filings during the quarter, barely beating out Texas which held the No. 1 spot for the previous two quarters. Other states with foreclosure rates ranking them in the nation's top 10 for the third quarter included Georgia, Michigan, Texas, Indiana, Utah, Ohio and Illinois. Quarterly foreclosure numbers soar in Florida, California; Texas remains static A 55 percent spike in activity catapulted Florida into leading the nation in total foreclosure filings during the third quarter. Texas, which led the nation in foreclosure activity for the first two quarters of the year, moved into second place, reporting 39,363 properties in some stage of foreclosure. With a 35 percent spike in activity, California rounded out the nation's top three, reporting 37,317 properties in some stage of foreclosure for the three-month period. While both Florida and California experienced significant increases in activity for the quarter, foreclosure activity in Texas remained basically unchanged, down less than 1 percent from the 39,690 properties reported for the second quarter, but still 18 percent above the 33,289 foreclosures reported for third quarter 2005. Compared to the same quarter last year, foreclosure activity in Florida is 26 percent above the 31,829 properties reported, and activity in California has increased 171 percent since the same quarter last year. The state with the fourth highest foreclosure total for the quarter was Michigan, reporting 20,777 properties entering some stage of foreclosure, a 37 percent increase from the second quarter and 109 percent above third quarter 2005 numbers. Ohio posted the fifth highest total, reporting 19,748 new foreclosure filings for the third quarter, a 23 percent quarter-to-quarter increase and 32 percent above the foreclosure numbers reported for the same quarter last year. "While the overall number of foreclosures represents a return to more or less normal levels, there are pockets of the country that are being hit more severely," Saccacio noted. "States with underlying economic issues, such as high unemployment or depreciating home prices will continue to outpace the rest of the country in the total number and rate of foreclosures."
Most recent home buyers should have seen this coming. It was bound to happen. No real estate jumps over 100% in less than 5 years and doesnt get somewhat of a 15-25% correction. Its going to get alot worse before things start to look better. I predict houses fall another 5% by the end of this year and another 15% by the end of 2007. Should take a while before houses see any kind of increase.
True, it similar to the market in that respect. When markets overshot the have to pullback or at worst sell off. I live in Denver Metro, 3 ppl just listed in the last month, alot for our area of homes, I wonder how many are selling for bad times or because the have an adj mortgage they can't afford. I am glad I bought below market a few year back. If I sell in the next 1-2 years I shouldn't lose at all hopefully. :eek:
Was reading an article this past weekend and it mentioned that if a neighbor or someone within a few houses of you has to foreclose it could send the price of your house down about $10,000 overnight.
Unfortunately that makes sense In fact I think the house sold 4 months ago was a distress/foreclosure sell. That's how we bought our place, maybe it's karma. The seller moved after only 6 months, it sat on the market for 6 months and I got it for about 5k less than they paid. I do believe real estate is very local. Close to downtown Denver it's twice the price for an older house and they can get it!
This should serve them well. Fools are always parted with their money. They bid up the prices and got mortgages which they would not be even able to approach 10 years ago, and now they will pay the price. These people made housing unaffordable to anyone who has common sense and middle class income. I know few couples that have combined income of around 100K and they got 600K-700K condos. When I tried to stop them, I was told that I am fool and the price will double in few years (that was the prediction of their friendly real estate agent).
Also maybe some of the new lower sales prices will lower the comps that appraisers do and thereby making financing more difficult.(Especially the no money down deals) I think most comps come from the mls though and an appraiser wouldn't use the foreclosure sale price as one.
I've been reading through these comments and yours is the first one that says it like it is. Who's fault is it for taking on adjustable rate loans or no interest loans? Where's the responsibility for these actions? Too bad, so sad.
Who's fault is it? IMO the blame rests with the powers that be who allowed the supply of money to get out of hand. Supply creates its own demand as they say.