With individuals not being able to pay their mortgages, lenders step in and foreclose on their homes.
Statistics
• 315,716 homes were in the foreclosure process last month
• 1 in every 409 U.S homes sold last month, is facing foreclosure possibilities.
• 31% increase in foreclosures from January 2009
• 12% less default notices in January compared to December, but up 4% compared to a year ago.
• 11% less foreclosure auctions in January compared to December, but up 15% from a year ago.
California, Florida and Arizona made up 44% of the country’s foreclosures.
Six California cities were ranked among the top ten
o Modesto- ranked 3rd with one in 107 housing units
o Stockton- ranked 4th with one in 107, as well
o Riverside-San Bernardino-Ontario area- ranked numbers 5 and 6 with one in every 109 homes
o Vallejo-Fairfield metro area- ranked number 7 with one in 112 homes
o Bakersfield- ranked number 8, with one in every 118 homes
Florida Cities were also included in this list
o Cape Coral-Fort Myers- ranked at number 9 with one in 121 homes.
o Orlando-Kissimmee-ranked at number 10 with one in 143 homes.
The city with the highest metro foreclosure rate was Las Vegas with one in every 82 homes.
The government has been involved with lenders and consumers to try and eliminate foreclosures as much as possible. With Obama’s Making Home Affordable Plan and programs introduced by lenders, one might think numbers for foreclosure rates would be much lower.
Some believe lenders are “pretending” to help by getting them on a trial payment, then denying them in the end. Not to mention the numerous amounts of times they lose documents and frequently request the same financial documents. If the lender will lose more money to foreclose on the property, chances are they will modify the loan, if not the process becomes more difficult.
Contributor, designer & admin for JohnHart Gazette.
