August Foreclosure Filings Still High but Growth Slowed
According to reports released by RealtyTrac, there was still a considerable number of foreclosure filings recorded for the month of August compared to the same period last year. Despite this, the growth rate is considerably slower than in the previous months. This is certainly good news especially for states hardest hit by the foreclosure crisis, for it could be a sign that the foreclosure problem has hit rock bottom.
There were about 303,800 households that entered some stage of foreclosure, up by 12 percent from last July. On the average, there was one filing for every 416 US homes. States that have the top five highest foreclosures rate include Nevada, California, Arizona, Florida and Michigan. Completing the top ten are Georgia, Ohio, Colorado, Illinois and Indiana.
The increase in foreclosure fillings can no longer be attributed solely to the mess in the subprime mortgage mess. With the declining home values, high fuel costs, weakening economy and sluggish home sales, it is not surprising that many homeowners are feeling the pinch and are no longer able to afford their mortgages. Most of them are trapped since selling and refinancing are out of the question.
Even mortgage investors and other lenders are suffering from the high national foreclosure rate, forcing them to slash prices on their inventory of bank foreclosures just to get rid of them.
According to Moody’s Economy.com, the nation can expect approximately 2.8 million homes in some state of foreclosure by the end of 2009. With the new housing rescue legislation to take effect in October, analysts and experts are saying that the next months will be very critical for the housing industry.
If, for some reason, home sales and home prices stabilize, the whole nation can breathe a sigh of relief - for this could signal the possible recovery of the housing industry.