Foreclosure Crisis: Ten out of every thousand households financially shaky nationwide

September 26th, 2007

According to the recently released data of Foreclosure.Com - a foreclosure information service provider from Fair Oaks - foreclosure counts in eleven states reached three-digit figures in August, contrary to last year’s data.

In August, lenders took away 355,623 homes from homeowners as a direct result of foreclosure, according to the analysis of REO filings done by the company.

REO, also know as real estate owned filings, are the last step of foreclosure proceedings. REO take place when the banks or the mortgage provider files for reclaiming the property for non-payments of the loan by the homeowner.

Foreclosure.Com released their data last week confirming that this year, eleven states experienced triple digit increments in REO filings compared to the same time last year.

In August, REO filings increased in places like California - a 472 percent increment in filings; Nevada - filings up by 193 percent; Arizona - 217 percent increment in filings; New Mexico - filings up by 156 percent; Florida - filings up by 142 percent; Hawaii- filings increased by 137 percent; New Hampshire - filings went up by 120 percent, and last but not least, in Minnesota - filings went up by 112 percent.

The number of people losing their homes to foreclosure on a per capita basis are: Louisiana with 14.3 homeowners for every 1,000 households in the region; Michigan with 11.2 homeowners out of 1000 households; Nevada with 12 homeowners per 1000; Colorado with 9.6 homeowners for every 1000 households; Indiana with 8.5 homeowners for every 1000 households; Ohio with 7.5 homeowners per 1000 households; Georgia with 9.8 homeowners for every 1000 households and Missouri with 7.6 homeowners for every 1000 households.

However, in the list of REO filings, Costilla County has the highest number of homes lost this year on a per capita basis. The numbers were a shocking 257 homeowners for every 1000 households. Still, if we see just the data of Costilla County, this figure is lower by 32.5 percent in the same period last year in the county.

An increase in the pre-foreclosure filings i.e. default notices and notices of foreclosure auction, is steady across the country. As per the data of Foreclosure.Com, the company believes that if the current situation continues further, then the number of homeowners losing their homes to foreclosure will cross 1 million in the US by this year end.

So far, in this year, the company notified 731,241 pre-foreclosures filings across the nation. This suggests that approximately 10 homeowners out of every 1000 households are distressed financially with their loan amount.