Archive for October, 2006

New statistics show that Georgia had the fourth-highest foreclosure rate in the United States during the third quarter of 2006. With 15,841 foreclosure filings and a 3.5 percent jump in foreclosures from the second quarter, Georgia’s foreclosure market appears to show no signs of slowing down anytime soon.

Nationwide, the foreclosure rate jumped 17% from the second to third quarter this year, and the current rate is 43 points higher than it was at this time last year.

[via Atlanta Biz Journals]

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New statistics show that Nevada may have the fastest grwoing rate of foreclosure in the country. With roughly 2,000 homes in foreclosure in the state during the month of August, the state has shown a 400% increase since the same time one year ago.

Now could be an excellent time to invest in Nevada foreclosures.

[via KVBC]

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While the California foreclosure rate has risen nearly 100% since last year, realtors at the California Realtors Expo last week expressed optimism about the California reale state market’s prospects for 2007.

Issues discussed were the upsurge in Adjustable Rate Mortgages over the past few years, and their effect on the market when rates reset in the next year. While it was stressed that this will mean more foreclosures, and that the rise in foreclosures is not yet finished, it was also widely beleived that this would not have destroy the housing market. While prices have fallen, many beleive they will not reach any kind of devastating lows.

For foreclosure investors in California, this is good news. There are many foreclosures currently available, and the market is still strong enough to support their sale at a good value. Buying low and selling can still earn you lots of profits, if you buy the right homes.

[via Press-Telegram]

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As home sales slow and property values drop, California’s foreclosure rate is on the rise. Since the third quarter of 2005 to the third quarter of 2006, foreclosures in California have jumped 111%.

The foreclosure rates steep rise corresponds to the increase in interest rates as the real estate market slows. With higher monthly payments to make, many homeowners simply cannot keep up.

Due to declining home prices, homeowners have not been able to bail themselves out by taking out a second mortgage, a home equity loan, or even by selling the home. While the increase is foreclosures is a trend general to California, it is the inland markets where the rate have jumped the highest. Now would be a good time for foreclosure investors to investgate purchase possibilities.

[via Central Valley Business Times]

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The foreclosure rate in South Carolina continues to grow, and unemployment and high interest rates are widely seen as the culprits. The Mortgage Bankers Association notes that the job market in South Carolina has been sluggish as of late, with little new development or job growth. Many feel that people in the area are unable to keep up with mortgage payments due to the fact that salaires in the region have been shrinking over the past few years. Couple that with rising interest rates and loan payments, and you have the situation in South Carolina, where more homeowners are defaulting on mortgage payments and the foreclosure rate rises every quarter.

While nationally, about 1% of homeowners are entering some stage of foreclosure, 1.6% of homeowners are facing foreclosure in South Carolina. South Carolina, along with other regions in the southeast have been hotspots for foreclosure investors looking to capitalize. Now would be a good time to look into that option.

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Foreclosure statistics in the Baltimore area can be deceiving. While during the past four years the number of foreclosures in Baltimore has fallen by nearly 8%, the foreclosure market in Baltimore is still ripe. The percentage of foreclosures as compared with the number of homeowners in the city is nearly double in Baltimore what it is in Philadelphia. So while the number of foreclosures has dropped, the cities rate of foreclosure is still very high.

However, these are very different cities, so comparing them we can draw some conclusions that can be universally applied when examining the real estate situation in any city. Philadelphia is marked by a growing economy and a rising number of ocupants. New jobs have been created, and more people are moving to Philadelphia. Baltimore has been marked by a sluggish economy, and while statistics on how many residents were moving in and out wer enot available at the time of this article, it can be assumed that more people are moving out of Baltimore than moving in. Since the amount of foreclosures has gone down, but the rate of foreclosure has remained the same, it’s safe to assume that people have moved out of Baltimore.

Therefore, while it may be easier to purchase a foreclosure in Baltimore for less than in Philadelphia, buying in Philadelphia is probably still a better investment. Sure, more foreclosures on the market means better prices for investors, but the probability of turning a profit on that home in a city which isn’t experiencing growth could be difficult. Turning a foreclosure in Philadelphia for a profit may be more lucrative, since there are more people moving into the city, and thus the demand for real estate is higher.

It’s important to remember to consider statistics such as these when deciding which foreclosures to buy, where and when.

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Foreclosure filings have once again increased during the third quarter, new statistics indicate.

Certain states have seen large increases during the third quarter as well. In Arizona, 5,348 properties went into some stage of foreclosure, a figure which has risen from 4,512 in the second quarter. One of the largest increases regionally came in the city of Phoenix. Many feel that this is a result of investing and real estate speculation in the area, and that many investors, who live in other locations, are now not able to sell the homes they bought or afford the rising mortgage costs associated with ARM loans.

California also saw an increase, with 39,896 new properties in default in the third quarter. And the state with the nation’s highest foreclosure rate, Colorado, saw an additional 16,313 properties reach foreclosure.

Florida also saw an increase in default activity in the third quarter, with almost 10,000 new foreclosures. Experts say that this is a result of the increased condominium development there as of recent years. The market is flooded with these new condos, and investors who own them are rapidly losing money due to not being able to sell them. This often leads to foreclosure.

This is all just more indication that the foreclosure market across the country is still rising, as national foreclosures rose about 24 percent from July to August, and have risen more than 50 percent year over year.

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Colorado continued to lead the U.S. in the foreclosure rate in August, with one national report showing that the number of foreclosures in the state spiked by 60 percent in one month.

The rate of foreclosure for Colorado in August of 2006 is 153% higher than it was in August 2005.

Statistics show 5,577 active foreclosures in Colorado, almost a 5 percent drop from July and about an 11 percent drop from August 2005.

Colorado has held the highest foreclosure rate in the nation all year long.

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