Foreclosures filings accelerating in several states

Posted by: Prashant Gopal on January 29, 2008

No surprise that Nevada, Florida, Michigan, California and Colorado topped RealtyTrac’s ranking of the states with the highest foreclosure rates in 2007. But what is interesting is that foreclosure filings are accelerating dramatically in several states, according to the report released Jan. 29 (Click here to see where your state ranked).

Foreclosure filings in Nevada, for example, jumped 215% since 2006 and 759% since 2005. In California, filings are up 238% since 2006 and 682% since 2005. But foreclosure filings are accelerating in places you might not expect. Massachusetts foreclosure filings increased 161% since 2006 and 751% since 2005. And Maryland foreclosure filings rose by a whopping 455% from 2006.

Here’s a breakdown of the top 20 foreclosure states of 2007, according to RealtyTrac:

[1]
Nevada
Households in some stage of foreclosure in 2007: 3.376%
2007 foreclosure filings: 66,316
Percent change from 2006: 215%
Percent change from 2005: 759%


[2]
Florida
Households in some stage of foreclosure in 2007: 2.002%
2007 foreclosure filings: 279,325
Percent change from 2006: 124%
Percent change from 2005: 129%


[3]
Michigan
Households in some stage of foreclosure in 2007: 1.947%
2007 foreclosure filings: 136,205
Percent change from 2006: 68%
Percent change from 2005: 282%


[4]
California
Households in some stage of foreclosure in 2007: 1.921%
2007 foreclosure filings: 481,392
Percent change from 2006: 238%
Percent change from 2005: 682%

[5]
Colorado
Households in some stage of foreclosure in 2007: 1.919%
2007 foreclosure filings: 71,149
Percent change from 2006: 30%
Percent change from 2005: 140%

[6]
Ohio
Households in some stage of foreclosure in 2007: 1.797%
2007 foreclosure filings: 153,196
Percent change from 2006: 88%
Percent change from 2005: 207%


[7]
Georgia
Households in some stage of foreclosure in 2007: 1.566%
2007 foreclosure filings: 99,578
Percent change from 2006: 31%
Percent change from 2005: 118%

[8]
Arizona
Households in some stage of foreclosure in 2007: 1.516%
2007 foreclosure filings: 69,970
Percent change from 2006: 150.91%
Percent change from 2005: 160.7%


[9]
Illinois
Households in some stage of foreclosure in 2007: 1.25%
2007 foreclosure filings: 90,782
Percent change from 2006: 25.29%
Percent change from 2005: 94.3%

[10]
Indiana
Households in some stage of foreclosure in 2007: 1.027%
2007 foreclosure filings: 52,930
Percent change from 2006: 11.31%
Percent change from 2005: 73.57%


[11]
Tennessee
Households in some stage of foreclosure in 2007: .983%
2007 foreclosure filings: 45,834
Percent change from 2006: 24.56%
Percent change from 2005: 65.66%


[12]
Texas
Households in some stage of foreclosure in 2007: .936%
2007 foreclosure filings: 149,703
Percent change from 2006: -4.57%
Percent change from 2005: 9.22%

[13]
Missouri
Households in some stage of foreclosure in 2007: .906%
2007 foreclosure filings: 32,022
Percent change from 2006: 81%
Percent change from 2005: 177%

[14]
New Jersey
Households in some stage of foreclosure in 2007: .902%
2007 foreclosure filings: 53,652
Percent change from 2006: 34.06%
Percent change from 2005: 52.75%

[15]
Utah
Households in some stage of foreclosure in 2007: .852%
2007 foreclosure filings: 9,668
Percent change from 2006: -25.87%
Percent change from 2005: -16.19%


[16]
Connecticut
Households in some stage of foreclosure in 2007: .833%
2007 foreclosure filings: 23,470
Percent change from 2006: 100%
Percent change from 2005: 111%

[17]
Maryland
Households in some stage of foreclosure in 2007: .830%
2007 foreclosure filings: 25,109
Percent change from 2006: 455%
Percent change from 2005: 388%


[18]
North Carolina
Households in some stage of foreclosure in 2007: .739%
2007 foreclosure filings: 37,426
Percent change from 2006: 67%
Percent change from 2005: 135%


[19]
Massachusetts
Households in some stage of foreclosure in 2007: .66%
2007 foreclosure filings: 41,487
Percent change from 2006: 161%
Percent change from 2005: 751%


[20]
Idaho
Households in some stage of foreclosure in 2007: .611%
2007 foreclosure filings: 6,032
Percent change from 2006: 141%
Percent change from 2005: 120%

Reader Comments

Russ Doggy

February 1, 2008 3:11 AM


I wanted to ask a mortgage question about he opportunities to buy at distressed prices. With these foreclosures might come opptys to buy at reduced prices

The game contemplated by people walking away from mortgages. Musical houses may be next?

That’s where you walk away from one overpriced and underwater house just after you buy a foreclosed (or REO) property nearby for a lot less. Then your neighbor can move into your house doing the same thing, and so on …

When the music stops playing everyone who actually wants to live there has moved a short distance into a probably comparable house at a fraction of their former house price / payment.

In the past apparently opportunities arose to do this in ‘mill towns’ or ‘company towns’ when a major negative employment event occurred causing housing prices & demand to drop. and occur they did! Within the span of a few years everyone shuffled into similar houses at a fraction of the previous price.

If you have a job, plan on staying, and are not generally dependent on credit scores to finance cars, etc. then it may be worth the potentially enormous savings if you have a large non-recourse mortgage. I guess you have to purchase the second home (at like 50% off) with a good down payment (cash) prior to walking from the first. I don’t know how this can be pulled off (the details) but it has happened so i'm told. Like a game of musical chairs.

This would be terrible for banks. I'll cry many crocodile tears fr them. Anybody know if there will be opportunity for home-debtors to do this again in steeply-depressed priced markets in California / Florida / Nevada today? I have excellent credit!

russ

February 1, 2008 3:12 AM


I wanted to ask a mortgage question about he opportunities to buy at distressed prices. Idesa rehashed from the CBS news special house of cards…

I was fascinated by seeing recent talk by "calculated risk" (is it a "bubble blog"?) of the game contemplated by people walking away from mortgages. Musical houses may be next?

That’s where you walk away from one overpriced house at nearly the same time as you buy a foreclosed (or REO) property nearby for a lot less. Then your neighbor can move into your house doing the same thing, and so on …

When the music stops playing everyone who actually wants to live there has moved a short distance into a probably comparable house at a fraction of their former house price / payment.

In the past apparently opportunities arose to do this in ‘mill towns’ or ‘company towns’ when a major negative employment event occurred causing housing prices & demand to drop. and occur they did! Within the span of a few years everyone shuffled into similar houses at a fraction of hte previous price.

If you have a job, plan on staying, and are not generally dependent on credit scores to finance cars, etc. then it may be worth the potentially enormous savings if you have a large non-recourse mortgage. I guess you have to purchase the second home (at like 50% off) with a good down payment (cash) prior to walking from the first. I don’t know how this can be pulled off (the details) but it has happened so i'm told. Like a game of musical chairs.

Anybody know if there will be opportunity for home-debtors to do this again in steeply-depressed priced markets in Michigan today? I have excellent credit!

Mark

February 3, 2008 3:37 AM

Do you understand the definition of accelerating? Your numbers generally indicate that a bigger change happened from 2005 to 2006 than from 2006 to 2007

Robert Fulton

February 8, 2008 12:47 AM

Again the sad part is that take out the foreclosure on comp properties and houses have increased in value.
Realtors are putting foreclosure in the MLS systems as good sales and falsely pushing prices down.

The worst part is that this is creating a circle where people who could refi bad loans cant.

I have provided hundreds of examples of Realtors putting in Foreclosures in the MLS system and proof appraisers and banks are using them to gauge values on refi bad loans. Only after showing how this will effect county budgets in Fla is there any notice to this.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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