Foreclosures Up 28 Percent From Last Year

[TexasLawyer]

Foreclosures Up 28 Percent From Last Year, According to RealtyTrac Report

Colorado, Georgia, Texas post highest rates

RISMEDIA, June 28, 2006—RealtyTrac(TM) (www.realtytrac.com), the leading online marketplace for foreclosure properties, has released its May 2006 U.S. Foreclosure Market Report, showing 92,746 properties nationwide entering some stage of foreclosure during the month, an increase of less than 2 percent from April 2006, but still a 28 percent increase from May 2005. Report results also indicate a national foreclosure rate of one foreclosure filing for every 1,247 U.S. households during the month.

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"Our May numbers echo the recent report by the Mortgage Bankers Association, which noted that delinquency and default activities were lower in the first quarter of 2006," commented James J. Saccacio, chief executive officer of RealtyTrac. "While our report confirms that the number of properties entering foreclosure is still significantly higher than it was during the same period of 2005, we've now seen two months of decreasing foreclosure rates followed by May numbers that were essentially flat. That three-month trend indicates foreclosure activity has stabilized in most housing markets across the country after spiking sharply at the beginning of this year."

Colorado posted the nation's highest foreclosure rate for the third month in a row thanks to increasing foreclosure activity in May. The state reported 4,198 properties entering some stage of foreclosure, a 13 percent increase from the previous month and a 41 percent year-over-year increase from May 2005. With one new foreclosure filing for every 436 households, the state's foreclosure rate was 2.8 times the national average.

Georgia's foreclosure rate -- one new foreclosure filing for every 537 households -- moved up to second highest in the nation in May after ranking fifth highest the previous month. With 5,769 properties entering some stage of foreclosure, the state's foreclosure activity increased 12 percent from the previous month and almost doubled from May 2005. Georgia also reported the fifth most foreclosure filings of any state in May.

Texas records most foreclosures, third highest foreclosure rate.

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http://rismedia.com/index.php/article/articleview/15052/1/1/

[bbinacan]

1. Well of course

Like the tech bubble of the 90s we now have greedy idiots thinking property values will never go down. At the same time, they are leveraging themselves with ARMS and IOs.

[bbinacan]

2. A repeat of the

80s real estate collapse.

[physioex]

5. Yep....

I remember Houston, it was a mess but it did eventually come back.

[lonestarnot]

3. 28% egh? Climbing

[barb162]

4. ARMs are going to send a lot more people down the hole

as interest rates rise

[onehandle]

6. Georgia is overbuilt, and we are being hit with layoffs.

I know for a Fact that there will be massive layoffs next year thanks to corporate mergers and outsourcing.

[tanyev]

7. Colorado, Georgia and Texas.

I wonder if any Bush voters are regretting their votes. The Bush economy seems to be leaving some people behind.

[hadrons]

9. I'm sure a number of fools thought they were protecting themselves ....

with that Bush vote (and I haven't forgot that a lot of people didn't vote for that clown in those states)

[leftyladyfrommo]

8. Companies were making loans to really iffy customers

No downpayments
High debt to income ratios
mediocre credit
Iffy loan programs - ARMS with beginning payments that were way too low
and interest only loans

We all knew this would happen.

[MGD]

10. It's hard to pay that mortgage when your job is in Mexico

Or China, Or India, Or anywhere but here in America. Surely the increase in uninsured healthcare consumers is contributing to this as well. It could also be argued that Fannie Mae/Freddie Mac has something to do with it by making loans available to millions of high risk borrowers that would not otherwise have been made available to them; although, their high risk status is surely compounded by the aforementioned economic issues.