Number of Homes Facing Foreclosure up 65 Percent

http://news.yahoo.com/s/ap/20080514/ap_on_bi_ge/foreclosure_rates;_ylt=A9G_R3br.ipItncA3Bus0NUE


By ALEX VEIGA, AP Business Writer 1 hour, 4 minutes ago

LOS ANGELES - More U.S. homeowners fell behind on mortgage payments last
month, driving the number of homes facing foreclosure up 65 percent versus the
same month last year and contributing to a deepening slide in home values, a
research company said Tuesday.

Nationwide, 243,353 homes received at least one foreclosure-related filing
in April, up 65 percent from 147,708 in the same month last year and up 4
percent since March, RealtyTrac Inc. said.


Nevada, Arizona, California and Florida were among the
hardest hit states, with metropolitan areas in California and Florida accounting for nine of the top 10
areas with the highest rate of foreclosure, the company said.

Irvine, Calif.-based RealtyTrac
monitors default notices, auction sale notices and bank repossessions.


One in every 519 U.S.
households received a foreclosure filing in April. Foreclosure filings
increased from a year earlier in all but eight states.

The combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy
has left financially strapped homeowners with fewer options to avoid
foreclosure. Many can't find buyers or owe more than their home is worth and
can't get refinanced into an affordable loan.


Efforts by government and the mortgage industry to stem the tide of
foreclosures aren't keeping up with the rising number of troubled homeowners.

The April data show nearly half of the properties received an initial notice
of default, suggesting many homes were new entrants to the foreclosure process.

"We're still sitting at roughly the same percentage of loans handled in
any way successfully as we were a year ago, and the volume (of foreclosure
filings) still keeps going up," said Rick Sharga, RealtyTrac's vice
president of marketing. "It's apparent that what they've tried so far
isn't working."


The U.S. House passed a bill last week that would offer government insurance
on $300 billion in new mortgages to refinance loans for an estimated
half-million borrowers facing foreclosure, particularly those who now owe more
than their houses are worth because of declining values.


House lawmakers also passed a bill that would send $15 billion to states to
buy and fix foreclosed homes.


Still, should the homeowner aid package clear the Senate, it faces a
potential hurdle in the White House, which has threatened to veto the plan,
arguing it's too risky and amounts to a lender bailout.


Even if a legislative compromise is reached, it could come too late for
homeowners with adjustable-rate mortgages scheduled to reset to higher rates
this month and the next.


More than 1 million home foreclosures are forecast for 2008.

"It doesn't look like the volume is going to slow down any time
soon," Sharga said.

More than 54,500 properties were repossessed by lenders nationwide in April.
In all, about 2 percent of U.S.
households were in some stage of foreclosure during the month, RealtyTrac said.


Still, as foreclosed properties pile up, they add to the inventory of homes
on the market and can drag down home prices. The impact is felt mostly in
regions where foreclosures are concentrated, such as Southern California, the Las Vegas area, South Florida and parts of Arizona.


Nevada
posted the worst foreclosure rate in the nation, with one in every 146
households receiving a foreclosure-related notice last month, nearly four times
the national rate.


The number of properties with a filing jumped 95 percent versus April last
year but declined 5 percent from March.


California
had the most properties facing foreclosure at 64,683, an increase of 112
percent from April 2007. The number of properties declined less than 1 percent
from March.


The state posted the second-highest foreclosure rate in the country, with
one in every 204 households receiving a foreclosure-related notice.


California metro areas accounted for six of
the 10 U.S. metropolitan
areas with the highest foreclosure rates, led by Merced, with one in every 66 households
receiving a foreclosure notice.


Arizona
had the third-highest foreclosure rate, with one in every 224 households
reporting a foreclosure filing in April. A total of 11,620 homes reported at
least one filing, up nearly 181 percent from a year earlier and up 26 percent
from the previous month.


Like Las Vegas
and inland regions in California, areas of Arizona saw a sharp
run-up in speculator-driven home prices and new home construction during the
housing boom.


Florida
had 35,264 homes reporting at least one foreclosure filing last month, a 146
percent jump from a year earlier and a 17 percent hike from March. That
translates into a foreclosure rate of one in every 242 households, the fourth-highest
in the nation.


The other states among the 10 with the highest foreclosure rates in April
were Colorado, Maryland, Georgia, Ohio, Michigan and Massachusetts.

I have been canvassing my neighborhood for Ron Paul and I am surprised at the number of empty homes, Some for rent others have foreclosure and auction notices on them. I new there was a few but every street has at least a couple it is much more then I realized. It's only going to get worse.

Anyone else noticing this in their areas?

The quote,
"Efforts by government and the mortgage industry to stem the tide of
foreclosures aren't keeping up with the rising number of troubled homeowners."

This is exactly why I'm voting Ron Paul. The "government" has no right to bail anyone out at taxpayer expense. Pretty soon they will be in the auto business for those who are having their car repossessed. What happened to personal responsibility?
If we don't fire our congressional representatives for voting in support of bailouts, we will have tyranny.

We already have tyranny. At this point I don't care of they bail people out the damage is already done. If they can prolong the consequences a little longer that is more time to prepare.

I agree people need to be responsible however if they start putting people out on the street in mass we will have societal break down in short order. I know it coming any however i would like more time to get prepared.