Nationwide Foreclosure Rate Drops Slightly in Second Quarter

Posted in Foreclosure, August 31st, 2006 |

New statistics indicate that foreclosure activity has dropped off nationwide during the second quarter, marking a 16 percent decrease in foreclosures nationwide as compared to the first quarter of the year. During the second quarter, 272,109 properties nationwide entered some stage of foreclosure.

However, while this is a decline in the current numbers, this figure is still 25 percent higher than the amount of foreclosures during the second quarter of 2005, which shows the foreclosure rate is still soaring. Roughly 1 in every 425 homes across the nation is in some stage of foreclosure.

The states with the highest rates of foreclosure this quarter were Colorado, Georgia and Texas. While Georgia and Texas saw their foreclosure rates dip slightly from the first quarter, Coloradoâ€™s rate swelled to move past Georgia as the state with the highest foreclosure rate. The fourth and fifth highest rated states were California and Florida.

While the slight drop may be a good sign for homeowners for now, many feel the worst is yet to come. As more and more adjustable rate mortgages mature over the next year, the climbing interest rates are expected to send many homeowners nationwide into default.