Rising Number of Defaults in Major U.S. Cities

Posted in General, August 31st, 2006 |

New statistics show that the number of homes entering default is rising severely in several U.S. cities, including Chicago, Indianapolis, Las Vegas, Phoenix and Denver.

Defaults in the Chicago area alone rose by 60 percent in the first quarter and were still going up in the second quarter. Indianapolis also has a high rate, with 1 in every 101 homes in default.

During the housing boom of recent years, investors in the Las Vegas and Phoenix areas bought more than 25% of the new property built there. However, now that interest rates are rising and a flooded market has contributed to difficulty in selling, these investors are facing default and foreclosure.

Texas leads the nation with 16,965 foreclosure properties in default.