Third Quarter Foreclosure Rate On the Rise

Posted in General, October 9th, 2006 |

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.