Texas Ranks Among The Top Ten Foreclosure States

Posted in Foreclosure, November 6th, 2007 |

Foreclosures continued to climb at an alarming pace during the third quarter this year. The numbers rose by 30% from the second quarter and is double that to what it was during the third quarter of 2006. Right across the nation 635,000 foreclosure filings have been listed – which calculates to one out of every 196 houses slipping into its grip. The figures include the different stages of foreclosure starting from default notice to repossession by the lender.

August and September numbers of foreclosures created records since 2005. The Sun Belt and Rust Belt states continued to dominate the scene. In the third quarter the first place went to Nevada with a ratio of 1:61. Foreclosure listings increased by 23% which was more than three times the number in the previous year during the same time.

California stood second with a ratio of 1:88. Number wise it came first with foreclosure filings on 94,772 units. It was a jump of 36% from the second quarter of the current year and a four times high jump over what it was a year ago.

Florida came next with a ratio of 1:95 and a number of 86,465 foreclosures. It was a 50% jump from the previous quarter and a double jump from 2006 during the same time.

The Rust Belt includes the former industrial centers. Of these Michigan with 1:102, Ohio with 1: 107 and Indiana with 1:196 is included in the top ten rankers in this foreclosure race.

All the areas are not evenly hit but nevertheless foreclosures in 45 out of the total 50 states have been rising steadily in year-by-year count during the third quarter. In October this year approximately $50 billion in ARM’s were affected causing many borderline cases to fall into the foreclosure muddle.

A huge number of loans are ready to reset during the middle of 2008. Many of the sub-prime mortgages taken in 2004 and 2005 will be now facing the music of increased interest. This is reflecting on the weak housing market. More foreclosures will mean more houses going up for sale with relatively fewer buyers. Some legal experts are of the opinion that over two million house owners are at risk. Within the next couple of years they will have to give up their houses to foreclosures. It will have repercussions on the entire country.