Foreclosure Increase By 23% in US in First Quarter

May 30th, 2008

During the first quarter foreclosure activity increased by 23% in the country in comparison to what it was in 2007. Of the top metro areas California and Florida account for 13 out of 20. According to RealtyTrac there were 649,917 foreclosure listings. The foreclosure rate in the country is 1:194 during this period. On a year-by-year basis it jumped in 46 of the 50 states and in 90 of the 100 jumbo metros in the country.

RealtyTrac provides the most comprehensive information involving nearly 1 million properties covering 2,500 counties across the state. It is the data provider for MSN Real Estate, Yahoo Real Estate and Walls Street Journal.

In some areas non-market factors are having a role to play in containing foreclosures. The case of Philadelphia city can be cited as an example. Towards the end of March it issued a temporary hold on all foreclosure auctions scheduled for April. Since then it has taken a consistent attitude in delaying foreclosures of owner occupied units. It is mandatory for borrowers to sit across the table with lenders to try and work out a viable affordable solution to avoid foreclosure. Some opine that this might postpone but not solve the problem. Stabilizing the market will also be delayed.

In Nevada the situation is particularly bad with a foreclosure rate of 1:54 during the first three months of the current year. This is 3.6 times higher than the national average. There were 19,595 foreclosure filings during this quarter in Nevada – a jump of 3% from the previous quarter and 137% high jump from the first quarter of the previous year – 2007.

In California there were 169,831 foreclosure postings with a foreclosure rate of 1:78 during the first quarter of the current year. From the previous quarter foreclosure activity increased by 32% from the last quarter of 2007 and a spike of 213% from the first quarter of 2007.

The third highest offending state was Arizona with a foreclosure rate of 1:95 during the quarter under discussion. There were 27,404 foreclosure filings showing a hike of 45% from the last quarter of 2007 and a 247% high jump from the first quarter of the previous year of 2007.

In Florida the situation continued to be grim with 87,893 foreclosures and a rate of 1:97. It was an increase of 17% from the last quarter and a jump of 178% from that of the first quarter of the previous year of 2007.