Foreclosure Rate
Since the past couple of years, one news that is constantly making headlines and which has completely changed the scenario of the real estate market in United States is the rising foreclosure rate in the country. The foreclosure rate in United States is galloping. Reports reveal that as compared to the March 2006 the country has shown a rise in its foreclosure rate by around 47% for the same month in 2007. In fact up to March 2007, there were a total of 149,150 foreclosure filings in the country, and 1 foreclosure per 775 households.
Amongst the various states of the country, the foreclosure rate is comparatively higher in the states of California, Florida, Texas, Michigan and Ohio. In fact these five states together account for more than 50% of the country’s total foreclosures. Looking at the metropolitan areas in the country, areas like Stockton in California, Detroit in Michigan, Las Vegas in Nevada, San Bernardino and Sacramento in California are amongst the nation’s top 5 metropolitan areas having the highest foreclosure rate.
There are several reasons to why the foreclosure rate in the country is mounting. The significant increase in sub prime lending, coupled with the rising rate of interest along with declining home price are of the important reasons for the rising foreclosure rate in the country. However, amongst them it is the sub prime lending that has played a dominant role. It is seen that several lending firms grant loans to borrowers without verifying their income. Thus large number of borrowers borrows these loans. However, what do they not realize is the rising interest rate, coupled with rising payment associated with it. Moreover there is no escrow for taxes and insurance. All these factors make the borrower difficult to keep with the mortgage payment, which eventually results in his property being foreclosed. Today there are thousands of such sub prime borrowers to are facing foreclosures.
The rising extent of foreclosure rate in the country has affected the homeowners to a very great extent. This is because they are not only losing their property but also their credit, which is certainly devastating. Other than homeowners it is sellers as well who have got affected with the rising foreclosure rate, as home prices are falling.
Though from the sellers’ point of view, the rising foreclosure rate is a bad news, it is certainly good news for homebuyers. The rising foreclosure rate in the country no doubt has given rise to several foreclosure homes that are now being available for sale. Several real estate investors as well as first time homebuyers consider buying these homes to be quite beneficial as they are available at a price lower than the market value. However, in the absence of adequate resources, one might not be able to find the right kind of foreclosure home at the right price. For this utilizing the foreclosure listings provided by www.foreclosure1.com, fully serves the purpose. This is because this website provides regularly updated list of different types of foreclosure homes available in all the areas of United States, there by making it easier for prospective home buyers to find the foreclosure home of their choice.
