July Foreclosures Increase

From June to July, the foreclosures rate rose 9%, up 93% from the same period last year. Michigan, Nevada and Georgia had the highest foreclosure rates across the country. The percentage includes auction sale notices, bank repossessions, and default notices. The foreclosure rate is the most recent measure of the struggling housing market, which has experienced foreclosures and defaults rapidly rise as home owners that are financially strapped have missed payments and have been unable to find buyers.

There were 179,599 reported foreclosure filings this past July, almost double the rate in July 2006. July had almost 15,000 more foreclosures than the month of June, with the national foreclosure rate being 1 foreclosure filing for every 693 households. 43 states had increased foreclosure rates, but 5 states surpassed the others, accounting for more than half the nation’s total foreclosures-Georgia, Michigan, Ohio, Florida, and California. Nevada posted the highest foreclosure rates with 1 filing for every 199 households-being more than 3 times the country average. Georgia had a foreclosure rate of 1 filing for every 299 households-more than twice the country’s average, up 75% in the state from the month before. Ohio, California and Florida had the highest number of foreclosures in July, with California’s cities dominating the top city foreclosure rates. California had the most foreclosures of any other state, but rose less than 1% from June, with the filing rate being 1 for every 333 households. The housing market has been struggling with rising foreclosure rates and defaults, primarily as a result of subprime loans and adjustable rate mortgages. The depreciation in home prices and the lack of buyers on the market have made it harder for those trying to get out from under their mortgages to avoid foreclosure to sell their homes, forcing a rise in the number of foreclosures.