Thursday, January 18, 2007

ARMs Put Some "Over The Edge" in Arkansas

The Times Record reports from Arkansas. "The number of foreclosures in Benton, Washington, Sebastian and Crawford counties rose in the fourth quarter of 2006, according to a report. Those larger populated counties, excluding Washington, also had an increase in foreclosures for 2006 compared to 2005."

"In northwest Arkansas, where the housing market has cooled drastically since 2005, Benton County had the most foreclosures in 2006 with 905, a 16.3 percent increase compared to 778 the year prior. For the fourth quarter, it also had the most foreclosures with 285."

"Todd White, senior vice president of Arvest Mortgage Co. in Lowell, said many factors other than adjustable rate mortgages and subprime loans lead to foreclosures. 'While that may very well have some effect, I think it’s a combination of a housing market that has cooled, short term rates and an economy that has been positive but flat,' he said."

"People who took out an adjustable rate mortgage in late 2003 when rates were low are now seeing their rates adjusted up, White said. 'There are certain people who live paycheck to paycheck. That extra $50 to $100 a month is enough to put them over the edge,' he said."

"Carroll County also had a rise in foreclosures, increasing 42.1 percent to 27 in 2006 from 19 in 2005. But for the fourth quarter, foreclosures dropped 60 percent."

"South of the tunnel, Crawford County had the largest increase in foreclosures, jumping 33.7 percent from 312 in 2005 to 417 last year. The county also had a rise in the fourth quarter, increasing 23 percent over the third quarter."

"Sebastian County’s slow economic growth hasn’t kept it immune from defaulting on mortgages. There were 811 foreclosures in 2006, 12 percent higher than 724 than the previous year. In the fourth quarter, it had 181 foreclosures, a 21 percent jump from 150 in the third."

"In the Fort Smith MSA, Sequoyah County in Oklahoma had a 72.7 percent increase from 11 foreclosures to 19 last year. Crawford County had the largest number of households in foreclosure in the fourth quarter at 0.52 percent — one foreclosure for every 192 households."


At 7:18 PM, Blogger Robert said...

This has been a particular point of interest to me. I've been wondering, as an investor, if there is a way to access a data base to would generate leads for people that refi'd 2 yrs ago into an ARM. If we were able to access these leads, it could be a good source for marketing...


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