Understanding Foreclosure Rates

Before we talk about foreclosure rates, you need to know exactly what foreclosure is. Foreclosure is the process in which the legal rights to of one’s possessions are revoked and their property is taken away from them and sold at an auction. The percentages of available foreclosure properties are known as foreclosure rates. For example, if there are 1000 households in a town of which 8 are foreclosed, then the foreclosure rate is 0.8%.

People who do not have the sufficient credit ratings to take out a loan at a high interest rate are often driven to take out subprime loans against a Mortgage Commitment. The trend of people taking out subprime loans has increased in recent times. If a debtor is unable to repay his debts, than he loses his equity right to redemption. Rising foreclosure rates also having a negative effect on the economy in this country.

We published in our latest press release that the national foreclosure rate in January was one foreclosure filing for every 466 U.S. households; the most severe problems occurring in the west as well as in Florida. Unemployment, economic hardship, negative equity, and credit availability are the driving forces of  foreclosures.

Yet between the months of December 2009 and January 2010 a drop in the actual number of foreclosures was recorded. The latest data revealed the following statistics:

The biggest drop in the state foreclosures was in Arkansas at -24.75%. Oklahoma had the highest increase in state foreclosures at 37.28%. But Nevada had the highest monthly foreclosure rate in the country with one in every 94 households receiving a notice. Arizona ranked second with one in every 132 households receiving a foreclosure notice, followed by Florida (one in every 158 households), Idaho (one in every 159 households) and California (one in every 165 households).

You can continue reading our latest press release or you can see the most up-to-date statistics of nationwide foreclosure rates.