| The top 26 cities affected by foreclosure are all in | | | | recovering. However the lowering prices may be |
| the states that make up the Sunbelt. | | | | providing a little relief. As more and more homes |
| 1. California | | | | are sold in foreclosure the prices continue to fall |
| 2. Florida | | | | and this has allowed for a little growth in the |
| 3. Nevada | | | | number of homes being sold, but this is currently |
| 4. Arizona | | | | not enough to reverse the process. |
| | | | | A large portion of the homes currently in |
| These four states are the very states that saw | | | | foreclosure have happened in the first three |
| the highest increase in real estate prices and sales | | | | months of 2009. This is partly due to the |
| during the booms at the beginning of the century. | | | | temporary freeze that had been placed on |
| | | | | foreclosures by creditors and the government |
| | | | | controlled companies Fannie Mae and Freddie Mac. |
| These results show that the highest amount of | | | | Many of the homes that had been affected by |
| growth is being followed by the greatest amount | | | | the freeze are now coming to foreclosure. |
| of loss and while the economy experts expect | | | | The foreclosure rate is so dramatic that one in |
| these areas will see even further climbs in the | | | | every 159 U.S. households with mortgages got a |
| number of foreclosures they also expect others | | | | foreclosure filing in the first quarter of this year. |
| cities to follow suit. | | | | While President Obama has implemented a bailout |
| | | | | program and is now working with major creditors |
| There are several factors that have contributed | | | | to make mortgage modifications available to the |
| to this high number of foreclosures. | | | | homeowner the success of this plan will probably |
| | | | | not be seen till the end of 2009. |
| 1. The biggest factor for these areas is the high | | | | The 10 hardest hit cities were: |
| number of subprime loans that were used to | | | | 1. Las Vegas, Nevada - Las Vegas posted the |
| purchase homes in these areas during the real | | | | highest metro rate of foreclosure activity in the |
| estate boom. These loans now have high variable | | | | quarter, with 4.48 percent of its housing units |
| interest rates and as a result the payments of | | | | receiving a filing. That was one in every 22 |
| these homes have escalated beyond the financial | | | | households with loans, or more than seven times |
| ability of the owners. | | | | the national average. |
| 2. The high unemployment rates have a direct | | | | 2. Merced, California - Filings were received in one |
| effect on the homeowner's ability to pay their | | | | of every 24 housing units in Merced, California, |
| mortgages and as a result of being in default on | | | | 3. Cape Coral – Fort Meyers, Florida - one of |
| their mortgages are now unable to refinance. | | | | every 26 households saw foreclosure filings. |
| 3. Overbuilding has placed more homes on the | | | | 4. Stockton, California |
| market then the demand for homes. This over | | | | 5. Riverside - San Bernardino, California |
| abundance drives the prices of these homes and | | | | 6. Modesto, California |
| others down. | | | | 7. Bakersfield, California |
| 4. Double digit home price declines as a result of | | | | 8. Vallejo, California |
| over building and other factors make the value of | | | | 9. Phoenix, Arizona |
| mortgaged homes decline which makes it more | | | | 10. Port St Lucie, Florida |
| difficult to get a home refinanced. | | | | Thirteen of the top 26 metro foreclosure rates |
| 5. As a result of the many foreclosures lenders | | | | were in California, nine were in Florida, and Nevada |
| have made it harder to get a loan. With loans | | | | and Arizona each added two metro areas. |
| hard top get less homes can be bought. | | | | Discover how you can ethically modify your home |
| | | | | mortgage loan and save as much as 47% off |
| All of these factors have created a vicious | | | | your current mortgage payment in as little as 60 |
| downward spiral that is not showing any sign of | | | | days without refinancing? |