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SACRAMENTO – Lenders repossessed nearly 3 of every 1,000 households nationwide
this year as a result of foreclosures. That’s up 70.6% from 1.7 of every 1,000
households 1st quarter 2007 and from 2.7 per 1,000 in 4th quarter 2007, according
to California-based ForeclosureS.com (www.foreclosures.com),
foreclosure information specialists.
These new numbers mean already this year 210,280 homeowners have lost their lock
on the American dream reports ForeclosureS.com.
Now with an expanded data base of more than 5.5 million property listings, ForeclosureS.com
has beentheprofessional’ssource for accurate foreclosure property information
for more than two decades. The company bases its analysis on the number of formal
notices filed against a property during the foreclosure process. That can include
notice of default, notice of foreclosure auction, and/or notice of REO (lender-owned
real estate that occurs after a foreclosed property fails to sell at auction and
reverts back to the lender).
Big increases in the nation’s Southeast and Southwest regions led another
7.2 of every 1,000 households into pre-foreclosure in the 1st quarter (515,411 pre-foreclosure
filings), up from 3.7 per 1,000 households (264,445 filings) 1st quarter 2007.
For all of 2007, almost 1.32 million homeowners nationwide (18.2 for every 1,000
households) faced pre-foreclosure, up 59.65% from 636,957 filings (11.4 per 1,000
households) in 2006.
“The foreclosure numbers and much of the economic news today sound scary,
but let’s get some perspective,” says Alexis McGee, foreclosure information
expert, educator, and president of ForeclosureS.com. She’s also author of
The ForeclosureS.com Guide
to Advanced Investing Techniques You Won't Learn Anywhere Else (Wiley),
and The ForeclosureS.com Guide to Investing in Pre-foreclosures Without Selling
Your Soul (Wiley).
“Total outstanding U.S. mortgage debt totals more than $10 trillion! Foreclosures
are a drop in that bucket,” McGee adds.
Also, says McGee, some of the “bad” economic news is actually good news
long-term for housing markets:
- Continued drops in housing starts and construction spending signal recognition that
oversupply must catch up with demand.
- New-home sales are down nearly 60% from their July 2005 peak, but overinflated prices
fueled that peak.
- Foreclosures and pre-foreclosures are way up, but many are the result of subprime
loans that shouldn’t have been made in the 1st place.
“Fortunately, Congress and President Bush now are on track with efforts to
revamp the nation’s financial system with the pending Foreclosure Prevention
Act; the recently passed Housing Stimulus Plan; new Higher Mortgage limits and various
assistance, education, and programs for homebuyers, owners, and the industry,”
says McGee.
“Markets will rally back to reality in the coming months as liquidity continues
to improve and the economy picks up” added McGee
Let’s look closer at more ForeclosureS.com REO and pre-foreclosure numbers:
- States with most REO filings by household 1st quarter include:
Arizona (8.9 per 1,000--16,903 filings--1st quarter 2008 vs. 2.2 per 1,000 households—4,071
filings--YTD 2007); Nevada (8.3 per 1,000 households—6,068 filings—YTD
2008 vs. 3 per 1,000—2,162 filings—YTD 2007); Colorado (5.8 per 1,000—8,915
filings—this year, down 14.7% from 6.8 per 1,000--10,473 filings—YTD
2007.
- States with the highest number of REO filings 1st quarter include: California,
51,097; Florida, 18,055; Arizona, 16,903; Texas, 16,285; Michigan, 14,472.
- States with the most pre-foreclosure filings by household 1st quarter include:
Nevada (24.7/1,000; 18,019 filings); Arizona (19.8/1,000; 37,262 filings); Florida
(18.7/1,000; 118,301 filings); California (10.5/1,000; 120,684 filings), and Colorado
(7.1/1,000; 11,144 filings).
Media Contact:
Sofia Gutierrez, ForeclosureS.com, 916-860-1190
or sofia@halldinpr.com
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