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Foreclosure Rate Reaches Record High
By Ted Cornwell
If you wonder why politicians are up in arms about foreclosures, the most recent monthly data from RealtyTrac gives you an idea.
In the first quarter of this year, more than 43,000 foreclosure filings were posted nationwide, according to the Irvine, Calif.-based online marketplace for foreclosed property. Those actions include default notices, auction sale notices and bank repossessions.
That was up 35% from the first quarter of last year, and it meant that one of every 264 households nationwide was the subject of a foreclosure action in the first quarter. That was the highest rate of foreclosure activity since RealtyTrac started issuing its report two-and-a-half years ago.
"The rise in foreclosure activity was quite dramatic and widespread in the first quarter, with 37 out of the 50 states reporting year-over-year increases," said James Saccacio, CEO of RealtyTrac, in a news release. "Certainly, the surge in subprime defaults has contributed to the overall rise in foreclosures. We estimate that more than 50% of the foreclosure activity we charged in the first quarter was from subprime loans."
But he said the rise is not limited to first-time homebuyers and low- to moderate-income borrowers. Foreclosures in high home price brackets are rising as well.
Nevada, Colorado and Georgia posted the highest rates of foreclosure activity. Nevada had one foreclosure filing for every 75 households, or three-and-a-half times the national foreclosure rate. Nevada's 11,514 first-quarter filings were more than double the number reported in the first quarter of 2006.
Colorado had 16,435 filings, or one for every 111 households. Georgia had 22,391 filings, or one for every 138 households.
Michigan, California, Florida, Arizona, Ohio, Texas and New Jersey rounded out the 10 states with the highest foreclosure rates.
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