American Foreclosures Increase by 65 Per cent in April Compared to Year Earlier

Advertising

The American dream of home ownership was made attainable several years back when the housing market boomed with incredible home prices and new construction provided an opportunity to so many who never imagined their dreams would be realized. Paired with the availability of home loans that seemed to craw out of holes like a pest control problem, and just about anyone could move into their dream home.

A California based company called RealtyTrac, Inc. has been monitoring default notices, repossessions and auction sales of real estate has provided updated information on just how quickly the dream bubble can be popped.

In one news report, nearly a quarter of a million homeowners across the country received at "least one" foreclosure filing in April, 2008. Last year, that number was just under 150,000. That is a 65 percent increase in foreclosures across America and a 4 per cent increase in just one month.

In February, 2008, the numbers had jumped up to 60 percent increase compared to the twelve months prior, with August of 2007 showing to be a peak month for foreclosures.

Of the states involved, Nevada, California, Arizona and Florida bring home the top four positions for having the highest number of foreclosures in the country.

Nevada holds the Gold, with 1 in every 1 in every 146 homes being foreclosed upon, California winning Silver at 1 in every 204 households and Arizona bringing home the Bronze at 1 in 224. If there were to be a Copper medal, it would go to Florida with 1 in 242 homes receiving a foreclosure notice.

California metro areas topped the list, occupying 6 of the top 10 spaces with 1 in 66 households receiving a foreclosure notice.

The national average is one in every 519 homes facing foreclosure, with the remaining 6 states of the top 10 being Colorado, Maryland, Georgia, Ohio, Michigan and Massachusetts.

Those rankings were similar when compared to the March, 2008 release.

If relief is being sought, some homeowners are optimistic about the US House passing the bill just last week that would offer government insurance on $300 US Billion on new mortgages to refinance loans facing foreclosure and another bill that would send $15 US Billion to states to buy and fix already foreclosed homes as an effort to provide some future relief and aid some damage already done.

It has to clear the senate and the White House has already threatened VETO, calling it a risky effort and claiming it “lender bailout”.

Reasons for the problems are said to be a combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy. Homeowners are left with little or no options, as they cannot find buyers and cannot get refinanced, many owe more than their homes are worth and with the increase in prices of food and gas, the problems for homeowners have but a continued bleak outlook.

Nearly 55,000 homes were actually repossessed last month. A sad statistical analysis but a serious reality as far as where the country stands in terms of "dollars".