Foreclosure Rates on the Rise Across the Nation

NEW YORK, April 14 /PRNewswire/ -- Data published by ForeclosureListings.com comparing March 2010 to February 2010 shows that Florida and Georgia had an important increase in foreclosure rates at 21.26% and 20.14% respectively. Michigan, one of the economically hardest-hit by the recession and a leading state in the number of foreclosure states, surprisingly had only a .44% rise in foreclosures for the same time period.

The state with the highest increase was Connecticut at 34.17%, while Colorado showed a drop in foreclosures between February and March of 2010 of 21.47%. Texas continued its increase in foreclosures at a rate of 10.07%, as did California at an additional 5.48%.

Colorado showed that a stronger economy leads to fewer foreclosures, although the Colorado Foreclosure Hotline is still receiving a record number of calls, according to manager Stephanie Riggi.

In 2007, financially troubled homeowners in a resort community could easily sell for at least what was owed. Today, resort counties are weathering 50% or greater declines in real estate sales from just four years ago.

According to Ryan McMaken, economist and director of community relations for the Colorado Division of Housing, "Demand for real estate has just dried up." Two years ago, 40% to 50% of foreclosure filings were second homes and timeshares.

Today, it's mostly local owners, with less than 30% of properties in foreclosure coming from timeshares and second homes, McMaken said.

Driving foreclosures are employment and wage reductions, where people who were earning over $200,000 have been trying to hang on to their properties while earning $50,000 or less, for example.

Although resort communities historically are among the last to feel economic hardships and the first to rebound from a downturn, it may not be true this time due to the depth of the economic problems in the U.S.

Projections now show foreclosures in Colorado this year will climb another 50% over 2009 numbers. Recovery is likely to lag the rest of the nation, due to fewer buyers and plummeting values.

Our foreclosure data compares March 2010 versus February 2010. Note the actual number of homes as opposed to the percentages in just 30 days:

Notice that Denver and Cleveland actually had decreases in foreclosures from the previous month, yet the number of actual foreclosures was 1,543 and 855, respectively. The foreclosure trend continues.

Although the increased foreclosure rate percentages were the highest in Pensacola, Florida at 35.89% and in McDonough, Georgia at 35.03%, the actual increase of foreclosed properties was only 159 and 185, respectively.

Compare the actual numbers of foreclosed properties and the percentage increases and decreases here:

We feel this is noteworthy because population and job opportunities are proportionate to the numbers of actual foreclosures. Too often it is easy to look at percentages instead of actual numbers of homes, or actual numbers of dollars. For example, look closely at the actual dollar values versus the change percentages:

With the growing unemployment rate and the lower pay for those finding jobs who were unemployed, the situation appears to be worsening. Even when prices are lowered on foreclosed property, many people will have difficulty securing loans.

Many of the recent loans made are for refinancing of existing loans, but every day, loan seekers are unable to get the loans they need to cover the difference between what they owe and what the home is currently worth.

However, purchasing a home at discounted prices has never been easier as distressed properties now account for about one-third of all home re-sales. For more information, visit: www.ForeclosureListings.com.

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This release was issued on behalf of the above organization by Send2Press(R), a unit of Neotrope(R). http://www.Send2Press.com

SOURCE ForeclosureListings.com