Expect More Repossessed Houses for Sale in Utah

More repossessed houses for sale are expected in Utah as its foreclosure rate continued to increase in May, based on foreclosure data released by California real estate research firm RealtyTrac.

In May, Utah had a foreclosure rate of 1 in every 316 households receiving a foreclosure filing. It was the fifth biggest rate among all the state foreclosure rates. Utah was also one of six states with a foreclosure pace that surpassed the 100 percent level.

Utah's foreclosure filings increased by 115 percent compared to filings in May 2008.

Economists explain that one of the factors for Utah?s significant increase in ranking and percentage is the delayed downturn in Utah's housing market and economy. They said that other states have already passed their worst months of foreclosure.

Jeff Thredgold, a Zions Bank consultant, also explained that Utah is struggling from the worst downturn in its history and that the distinctive characteristics of families in Utah make them practically defenseless against financial difficulties during economic downturns.
He said that families in Utah are usually larger than families in other states and that they are typically one-income households.

In May, a total of 2,927 households statewide were hit with a foreclosure filing. This figure included housing units which are already repossessed houses for sale.

Nevada remained on top of the foreclosure rate chart, with 1 in every 64 households receiving a foreclosure filing. California and Florida trailed Nevada, with 1 in every 144 households and 1 in every 148 households, respectively, receiving a foreclosure filing.

The Making Home Affordable program of the Obama administration was launched earlier this year to prevent further foreclosures and other improvements in the program were released to help more troubled homeowners.

But it is still unclear why the program is unable to make a significant reduction in the number of foreclosure filings and repossessed houses for sale in many areas.

What is clear is the effect of joblessness on the ability of mortgage borrowers to make their monthly payments. Without jobs, homeowners fail to pay, pushing their loan balances to higher levels.
When they apply for loan modifications, they are rejected either because they have no income or because the values of their homes have deteriorated. Ultimately, these homes become repossessed houses for sale.

Economists expect the unemployment rate, currently at 9.4 percent, to increase to 10 percent in the next months.

With more unemployed Americans, more foreclosures and more repossessed for houses for sale are expected.

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• Rates of Foreclosures in Nevada Still Highest Despite Slack
• High Unemployment, Foreclose Rates Pummel Utah
• Foreclosures to Continue By Next Year