Foreclosure rates continue to tick up

07.17.09
By James Conroy

It appears that a growing number of Americans are unable to stop foreclosure as new figures show that foreclosure rates increased almost 15 percent during the first six months of 2009.

The statistics from RealtyTrac show that there were more than 1.9 million foreclosure filings in the first half of 2009. These figures mean that almost 9 percent of all properties in the U.S. received a foreclosure filing during the first six months of the year.

It should not be surprising that the states that were hit the hardest with foreclosure filings are also those that have suffered under the economic downturn with California topping the RealtyTrac list 391,611 properties under foreclosure during the first two quarters of the year.

But perhaps an even bigger problem is seen in Arizona and Nevada, where foreclosure rates seem to have skyrocketed. In Arizona, during the first half of the year, almost 90,000 properties had a foreclosure filing - a 55 percent increase over the first six months of 2008. Meanwhile, in Nevada one out of every 16 properties faced foreclosure - the highest foreclosure rate in the country at 6 percent of all properties.

James J. Saccacio, CEO of RealtyTrac, says that programs set up to slow down foreclosures do not appear to be working as of yet and says the nation's unemployment rate - which currently stands at 9.5 percent - plays a large part in the overall foreclosure figures.

"Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes' are now worth represent a potentially significant future risk," he said. "Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue."

Although figures released last week from Freddie Mac show that mortgage rates continue to fall, it doesn't appear to be putting an end to increased foreclosures. A report this month from the Mortgage Bankers Association finds that the foreclosure rates between the fourth quarter of 2008 and the first quarter of 2009 reached their highest level since 1972.

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An increasing number of Americans are losing their home to foreclosure