August Sees A Rise Of 12 % In Foreclosures

September 19th, 2008

The month of August saw a rise of 12% in foreclosures. This is an increase of about 27% from that of August last year. The report on foreclosure this month says that out of every 416 houses in America, at least one house has faced foreclosure. A total of 303879 properties have been in a critical financial situation this August. However, the annual rise of foreclosures this month is much lower than what was seen in other months. The rate ranged between 50%and 60 %. The decrease is mainly because the number of defaulters has reduced this month.

The gradual deceleration of the number of defaulters and auctions is primarily due to the recent laws that permit the owners more time to pay up before the foreclosure is announced. The other reason is that the owners are being treated with compassion by the lenders because of the new guidelines made for easy loans. Still the main question remains to be answered. It is yet to be seen whether the latest relief strategies, will ultimately bring a reduction in foreclosures or are merely creating a short term relief.

The three main states that top the list of foreclosures are Nevada, California and Arizona. Nevada’s sad reality says that out of 91 houses at least one has faced foreclosure this month. Surprisingly, Nevada has recorded the maximum rate of foreclosure for the last 20 consecutive months. About 11706 houses have faced foreclosure, signifying a rise of 16% than that of July and a jump of 89% since August last. Following Nevada closely, is California with the next highest number of foreclosures. At least one house in about 130 houses had to face foreclosure. Third in line is Arizona. Among the top ten are the states of Florida, Georgia, Colorado, Michigan, Ohio, Indiana and Illinois.

A total of 101724 properties in California indicate a 40% increase of foreclosure since last month and an annual hike of more than 75%. A reduction of 4% than that of last month was observed in Florida. However, the annual graph reveals a rise of 40%. The dismal picture is also seen in Arizona where the annual rise is about 63% than last year.

Realty Trac that meticulously records all foreclosure filings including the notices for auctions, default and Real Estate Owned provides this accurate information. Ranking third in the list of online real estate sites, it helps people to sell and purchase property.