Quarterly Foreclosure Rates On A Rise
Monday, August 20th, 2007Foreclosure filing of USA continued to rise in the first quarter of 2006. This rising figure is confirmation to the fact that there are many U.S. householders, who are struggling to maintain regularity in the monthly payments of their mortgage.
323,102 properties were foreclosed or attained a stage nearer to being foreclosed in USA during this period. It was an increment by 72 % from the figures revealed in the same period of the previous year. As per the data accumulated from the U.S. Foreclosure Market Report, the figure saw an improvement by 38 % from the last quarter of 2005. This Quarterly Foreclosure Rate (which depicts 1 new foreclosure formation for every 358 U.S. household) was better than every quarter of 2005.
According to experts, this steep hike in foreclosures of the first quarter is a continuation of the steady uphill trend that was observed from Q1 of 2005. Now, figures of foreclosure have continuously improved during previous four quarters and it might go beyond 1.2 million in this year. With this rate, the Annual Foreclosure Rate of the nation might go above 1 % of U.S. households. They also pointed out that there was a 13 % dip in foreclosures during the last month of previous fiscal year. This indicated that the foreclosure rate of the nation might level after a considerable period.
However, they are feeling that the prevailing situation of the foreclosure market might make it improbable for the foreclosures to arrive to their low figures which highlighted the recent periods. During those periods, interest rates were very low and appreciations for home prices in most areas of USA were skyrocketing. Still, they believe that foreclosures might go lower if more investors and buyer will take part in the market. Their participation will give distressed householders an opportunity for selling the property without moving into foreclosure or default.
Quarter analysis of Foreclosures
During the first two quarters of 2005, the foreclosure rates were steadily rising and neared 200,000. In the last two quarters, the foreclosure rates continued to accelerate and in the final quarter the figure almost touched 300,000. More than one million properties were foreclosed during 2005. However, the figures of Q1 of 2006 bettered every other quarter by crossing the mounting figure of 300,000. If these figures can be carefully scrutinized, then at this rate the bench mark for this year might be 500,000 with an annual total of more than 1.6 million.
Georgia, Indiana and Colorado register best foreclosure rates
In spite of a 19 % decrement in the figures of March, the best foreclosure rate for a state was documented by Georgia in Q1 of 2006— for 127 households there were formed one foreclosure. 24,419 properties of Georgia were reported to have entered a particular foreclosure stage. This figure doubled the one recorded in Q4 of 2005 and tripled the figure of Q1 of the same year.
Quarterly Foreclosure rate of Colorado ranked second with their figures (1 for 138 households). It had 13,267 properties that entered a foreclosure stage. This figure doubled the one recorded in Q4 of 2005 and improved the figure for Q1 of the same year by 96%.
Indiana ranked third for quarterly foreclosure rates (1 for 165 household) with 15,261 properties becoming a part of foreclosure stages. The figures improved by 84 % from Q4 of 2005 and doubled the numbers of Q1 of the same period.
The other states of USA that were a part of the 10 best in Quarter Foreclosure Rates included Ohio, Utah, Florida, Nevada, Michigan, Tennessee and Texas.
Texas, California and Florida register most foreclosures
Texas State registered most foreclosures in the Q1 (2006) of all the states with a figure of 40,236. It was followed by Florida with 29,636. California came third having 29,537 properties in foreclosure stage during Q1 of 2006. However, Californian state had a very low quarterly foreclosure rate (1 for 414 households).
Other states in the list with most foreclosures during Q1 of 2006 were Illinois (13,691 properties) and New York (13,795 properties).
U.S. Foreclosure Market Report available at http://www.foreclosurelistings.com/foreclosure-trends/ reveals the number of properties that entered a foreclosure stage during this quarter. For the convenience, the figures have been segregated in months and by different states. The report available at this link indicates different phases for a foreclosure: Pre-foreclosures, Foreclosures and REO or Real Estate Owned Properties.
