71 Percent Hike in Third Quarter in US

The number of foreclosure in US has gone up by 70 percent in the third quarter of 2008 as compared to the figure last year during the same period. It has been found that about 766,000 households throughout US have got one foreclosure notice between the months of July and September. It is envisioned by the real estate experts that by the close of this year, about one million properties will be facing a foreclosure notice on them. It is expected to represent nearly one-third of the properties for sales activity in US. The greatest problem that foreclosure leads to is that it brings down the prices of the neighboring properties and also affects the economy of the surrounding areas badly.

It has been found that the states of Nevada, Florida, Michigan, Arizona, California, and Ohio made for over 60 percent of the foreclosure activity that took place in the third quarter. Among these states, the state of California alone accounted for over one-quarter of the filings. Detroit and Atlanta is counted among the 20 badly affected metropolitan areas outside Nevada, California, Arizona, and Florida. The decreasing value of home together with strict mortgage lending standards has put a large number of homeowners into serious problem. There are several who are unable to find buyers for their property and also refinance their loan. This is because the global credit crisis has led to lesser availability of loans.

In the previous month, the instances of resale activity in the real estate made up for over one-half of the prevailing home sales in the state of California. This was because of the reason that the sales activity went up by 65 percent as compared to what it was a year back, while the median home price throughout the state went down from 34 per cent to $283,000. The number of foreclosure filings was down by 12 per cent in September as compared to August. This was mainly due to the new state law. While the lenders have to give a 30 days prior notice to the borrower before a default notice is filed in California, it is 45 days in North Carolina.

However, this cannot really help the distressed homeowners as about 12 million Americans out of the 52 million are facing this problem. It is time to just wait and see that how steps from the side of the government can help in solving the problem.

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