Home Repossessions

A new trend is on the making and it concerns the real estate market. Due to ever falling prices, slow sales and higher interests in mortgages or loans, most borrowers across the nation are piling up more debt than they could actually repay and the process is getting faster by the day. Now the talk of the day is that there is a housing bubble getting ready to burst. Beneath the different exteriors lies a dark fact that the foreclosure rates are moving towards the higher side. In April 2005, new repo homes were added to an existing list and the number was 64,057 as compared to 62,422 in March. According to a data survey, May 2005 saw new additions comprising of 22,734 homes, which was a decrease of 17% from the April figure.

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Florida with the highest rate of foreclosure for two months in row in early 2005 saw one out of every 719 properties in foreclosures. Following Florida was Texas and in both places the rate of foreclosure was 2.5 times the national average. The inventory piled up in 2005 only went on to show the volatility and the geographic variations of the national housing market. On the other hand Los Angeles County saw a low rate of foreclosure in April 2005.

The repossession of a home happens because of a tendency pattern followed by home owners across the nation. Most homeowners enter an adjustable-rate mortgage with no-down payment loans and low initial cost options. As a result, the slightest change in the market, interest rate or the economy has severe effect on the homeowner's status of repaying the loan.

In 2005, a rise was expected by 8.8% to $201,500 in the national median existing home price for all types of housing and the price of a new home was expected to rise by 5.7% to $233,600. Now this can be seen as a positive shift but according surveys the impact was not the same nationwide. A house which was bought in San Francisco increased by 100% its value in 10 years but the same rate was not observed in Detroit. So again within the same country there are different markets based on geographical locations that drive different prices. According to another survey conducted by economy.com, it was found that Americans borrowed a whopping $705 billion in 2005 for buying homes as against $226 billion in 1999. What the borrowers never considered was what will happen if they are unable to pay the loan? They have not been able to forsee the fact that their house can go into foreclosure in such a situation.

By the fourth quarter or the end of 2005, Florida saw a decrease of 29% in foreclosure rates and yet it was in the news and accounted for nearly 14% of the nations new foreclosure homes. The highest number recorded by Florida was 121,843 which is equivalent to 1.67% of homes in the state.

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• Oklahoma City
• Indianapolis
• San Antonio
• Sacramento
• Irvine
• Dallas
• Los Angeles
• St Louis
• Greenville
• Houston
• Phoenix
• Atlanta