Utah in Fifth Position for Posting a High Foreclosure Rate
Posted in Foreclosures, by Courtney Allen
Photo by Ddpavumba
Utah is the fifth state in the US that had posted the highest number of foreclosure postings in 2011 although there was an overall decline in the number of foreclosure activities in the country. According to a recent report published by one of the largest foreclosure tracking firm in the nation, RealtyTrac, there are only four other states which are above Utah in the list with the highest foreclosure postings.
Nevada is at the top position with one foreclosure in every 16 households, followed by Arizona with one in every 24 homes. California is in third position with one foreclosure in 31 housing units and Georgia is in fourth position with one foreclosure in every 37 homes. For every 43 households in Utah, there was one foreclosure. The overall rate in the nation was one foreclosed properties in every 69 housing units.
RealtyTrac reported that last year 2.3% of Utah homes received foreclosure filings. In comparison to 2010, the number of filings was lower by 32%, but the agency warned that this drop in 2011 is misleading and people should not think that the real estate market of this state is improving.
Owing to various improper foreclosure practices, foreclosure processing was suspended during the first few months of 2011, so there was a significant drop in the total foreclosure filings all across the nation.
CEO of RealtyTrac Inc., Brandon Moore stated, “Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year.” 2007 marked the beginning of the recession period and since that year, 2011 recorded the lowest number of households moving into foreclosure nationwide. Last year, nearly 1,900,000 households faced foreclosure.
But as the foreclosure processing scandals are over, RealtyTrac expects that the number of foreclosure activities will again move up this year in comparison to last year but will not exceed the record figures of 2010. There are still a large number of homeowners who are lagging behind or are being forced to stop paying their monthly mortgage payments.
There are many reasons for so many upcoming delinquent loans which include a high rate of unemployment, decreasing values of homes and a sluggish real estate market. Moreover, there are many homeowners who have stopped making their regular mortgage payments because their respective debt is much higher than the value of their owned property.
RealtyTrac’s report states that the foreclosure activities in 2011 were lower by 34% in comparison to 2010. The other top 5 states with high foreclosure rate after Utah are Michigan with one foreclosure in 45 homes, followed by Florida with one in 49 households, Illinois with one in 51 homes and Colorado and Idaho, both with one foreclosure in 56 houses.
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