The Foreclosure Report

Area Foreclosures Ranked

A report from the LA Times. "The congressional Joint Economic Committee released a report today detailing the local impact of high-risk sub-prime mortgages and foreclosures. California ranked 14th in the nation for foreclosures per household last year, one for every 86 households, according to RealtyTrac."

"Colorado's foreclosure rate was the highest, one per 33 households, followed by Georgia, Nevada and Texas. The average national foreclosure rate was one per 92 households."

"Among metro areas, Detroit had the highest foreclosure rate last year, with 40,219 total foreclosures, followed by Atlanta, Indianapolis, Denver and Dallas, according to RealtyTrac."

"Two California metro areas made the top 20. Stockton ranked 11th with 5,153 foreclosures, one per 37 households. Riverside-San Bernardino-Ontario ranked 13th with 30,255 foreclosures, or one per 39 households."

"The report also found that: The Rust Belt, Sunbelt and Colorado saw the highest number of foreclosures in 2006, with 60% due to sub-prime loans, despite the fact that such loans are only 14% of the total outstanding mortgage debt, according to RealtyTrac."

"Overall, 1.8 million hybrid ARMs (30-years adjustable rate mortgages with low teaser rates that often reset after two or three years to much higher rates) are expected to reset 2007 and 2008. Half of sub-prime borrowers over the past two years provided limited financial documentation and 90% overstated their income."

"Foreclosures this year are on track to match or surpass the 1.2 million in 2006, according to RealtyTrac."

posted by Ben Jones @ 11:23 AM