National Foreclosure Filings: Still No Sign of Slowing Down
November 21st, 2007 by 
Joseph Smith
According to a recent study, foreclosure filings in the United States are still as high as ever. States that are hit hardest are those located on the coast such as Florida and California. The third quarter of this year showed a considerable increase in both Florida foreclosure homes and California foreclosure homes, making many locals worried about the negative impact of such high foreclosures rate on the overall housing market.
States like Ohio can partially blame its weak economy for the rising number of foreclosed properties. On the other hand, some states can only blame their current foreclosure crisis on speculative excesses. Home prices in Florida and California remain high and mortgages are no longer affordable. In general, cities hit hardest are either located in the Midwest or the Sun Belt.
It has been estimated that there are actually 7.2 million subprime mortgages and over 14 percent of these loans have defaulted. The Center for Responsible Lending is projecting that for every five subprime mortgages taken out from 2005 to 2006, there is one that will end up in foreclosure. This means over 2.2 million families will lose their homes.
The top ten metro areas hit hardest include Stockton (CA), Detroit (MI), Riverside/San Bernardino (CA), Fort Lauderdale (FL), Las Vegas (NV), Sacramento (CA), Cleveland (OH), Miami (FL), Bakersfield (CA) and Oakland (CA). As you can observe, half of these cities are in California.
In any case, buyers interested in California foreclosure homes should realize the great opportunity that the current housing market condition presents. Buyers certainly have the advantage especially with the thousands of foreclosure homes to choose from. Sellers will have to come up with enticing offers and irresistible incentives in order for them to enjoy at least 90 percent of their asking prices. Brokers like Foreclosure Deals can provide both these buyers and sellers with much needed assistance.
