Top 10 States with Highest Foreclosure Rate

22 August 2008

Author: admin Posted under Foreclosure Filings

Based on the recently released data from ForeclosureDeals.com, the top ten states with the highest foreclosure rate for the month of July are the following:

Nevada (One filing for every 106 Households)
California (One filing for every 182 Households)
Florida (One filing for every 186 Households)
Arizona (One filing for every 195 Households)
Ohio (One filing for every 375 Households)
Georgia (One filing for every 385 Households)
Michigan (One filing for every 389 Households)
Colorado (One filing for every 390 Households)
Utah (One filing for every 472 Households)
Virginia (One filing for every 562 Households)

Foreclosure filings include Notices of Defaults, foreclosure auction notices as well as bank repossessions. Across the nation, the number of foreclosure filings reached 272,171 just for July alone. Compared to June, the national foreclosure rate increased by 8 percent while year-to-year comparison showed a 55 percent rise, with one foreclosure filing out of 464 US homes.

The current problem with the housing industry can be traced back a couple of years ago, during the housing boo. Predatory lending practices were rampant and many borrowers found themselves getting approved for mortgage loans which they could not afford in the first place. In addition, the loans they took out were the popular hybrid mortgages, which offered incentives like no down payment, interest only payments and adjustable rates.

When the subprime industry realized their mistake, it was too late. Millions of borrowers defaulted on their mortgages and drove down home market values. Home sales activities became sluggish and market conditions started favoring buyers over sellers.

In the wake of the foreclosure crisis, several legislations were passed in an effort to curb the growing number of foreclosed homes. Both the federal government and local governments are trying hard to minimize the damage brought about by the collapse in the subprime mortgage market.