Nationwide Foreclosures Soared 25% From 2007

Nationwide, the number of foreclosed homes increased by 25% to nearly 280,000 in October this year from October 2007, according to foreclosure tracking firm RealtyTrac. One unit in every 452 homes was in a foreclosure proceeding.

Among the states, Nevada had the highest foreclosure rate in October, with one unit in every 74 household in a foreclosure stage. Arizona and Florida are next in the list of foreclosure states, with Arizona having one unit in every 149 homes foreclosed and Florida having one unit in every 157 foreclosed.

The others in the list of top ten states with the highest foreclosure rates were California, Georgia, Colorado, Illinois, Michigan, New Jersey and Ohio. California’s foreclosure rate in October 2008 dropped by 18 percent from September 2008, but it still had the biggest number of foreclosed units in October.

Among metropolitan areas, Las Vegas posted the biggest foreclosure rate in October, with one unit in every 62 households foreclosed. Four Florida cities were in the top ten: Fort Myers-Cape Coral, Miami, Fort Lauderdale and Orlando. Four cities in California were also in the list: Stockton, Merced, Riverside-San Bernardino and Modesto.

RealtyTrac’s chief executive officer James J. Saccacio said that the efforts of some states to defer foreclosure proceedings through moratoriums had reduced the foreclosure rates. California has required lenders to notify homeowners before filing a delinquency notice not less than 30 days in advance. North Carolina has a 45-day notice requirement.

Saccacio however said that foreclosure delay efforts seem at first to be helpful to homeowners, but they will just delay the foreclosure process and not help borrowers significantly. The temporary decrease in foreclosure rates could even hide the seriousness of the foreclosure crisis.

In November, Housing & Urban Development Secretary Steve Preston announced that the federal government is planning to allow more homeowners to qualify for the $300-billion program launched on October 1 to help borrowers exchange risky loans with more affordable loans.

Understand Florida foreclosure rate.

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