The Foreclosure Report

'Call It The Bust After The Boom'

A trio of reports on foreclosures, starting with Arizona. "Home foreclosures are on the rise in Arizona as the housing market continues to cool down and interest rates rise. The 8,321 Arizona filings in the first two quarters of 2006 represent an increase compared to the last six months of 2005, the number is down by about 800 from the first six months of 2005."

"Maricopa County accounted for the bulk of foreclosure activity, 5,215 actions, for the first six months of the year. Alexis McGee also said home prices will not crash like they did in the early 1990s. 'Back then, overbuilding by developers led to excess inventory and what we call competitive liquidation of unsold new homes,' she said. 'This time, the inventory just isn't there.'"

From Colorado. "Weld County has the highest concentration of homes in foreclosure, overtaking the Denver metro-area county of Adams. Realty Trac of Irvine, California, recently reported that one of every 66 homes in Weld County entered some stage of foreclosure in the second quarter, compared with one of every 71 homes in Adams County."

"'It is not a fact we are real proud of,' said Donna Schmidt, chief deputy public trustee for Weld County. 'We are extremely busy.'"

"Schmidt blames poor lending practices for the jump in foreclosures in her county, including adjustable-rate and zero-down mortgages. 'We are seeing the tail end of the bad loans that were given out,' she said."

From Florida. "Call it the bust after the boom. Losing a home for failing to keep up with the mortgage is a growing trend, a trend Pasco County is trying to slow with its foreclosure prevention program. 'Right now at least 50 percent of the people we're seeing are coming in saying I can't afford my homeowners insurance,' said Joanne Whittlesey of Consumer Credit Counseling Service."

"Real estate attorneys said in addition to increased insurance rates, higher property values leading to higher property taxes and increasing interest rates all contribute to the increasing number of foreclosures."

posted by Ben Jones @ 2:46 PM