Foreclosure Wave Spreading, Group Says

By: Daniel Carty
Topics: Real Estate

(AP Photo/David J. Phillip)

A new wave of foreclosures is spreading into previously insulated areas as unemployment increasingly drags down the housing market, according to online foreclosure marketplace RealtyTrac.

The highest metropolitan foreclosure rates in the nation remain in sunbelt states like California, Florida, Nevada and Arizona, according to RealtyTrac's 2009 Metropolitan Foreclosure Market Report.

But areas like Provo, Utah, Fayetteville, Ark., Portland, Ore., and Rockford, Ill., had foreclosure rates above the national average last year. And even though markets like Honolulu, Minneapolis and Seattle were at or below average in 2009, they all saw foreclosures spike at a rate twice the national average over the last 12 months, according to the report.

"While it was expected that cities from states with the highest levels of foreclosure activity would top the charts, there is evidence that we're entering a new wave of foreclosures, driven more by unemployment and economic hardship than what we've seen over the past few years," said James J. Saccacio, chief executive officer of RealtyTrac.

California registered as the state hit hardest by foreclosures, with nine of the top 20 metropolitan foreclosure rates. Florida accounted for eight, Nevada for two and Arizona for one.

Las Vegas had the highest foreclosure rate – a whopping 12 percent, which is more than five times the national average.

Cape Coral-Fort Myers, Fla., was second with a 11.87 percent foreclosure rate. Merced, Calif., ranked third with a rate of more than 10 percent.

Metropolitan areas are those with populations of at least 200,000.

2 Comments Have Your Say
Email Story Send to a Friend
Share This Tell Your Friends
Tweet This Tweet This
More Share It

Add a Comment


by TheodoreL February 9, 2010 8:50 PM EST: I completely agree that we are sure to more foreclosures. The real unemployment (underemployed can't afford high mortgage payments either) is closer to 20%. I've got family members who are about to go under.
At the same time, all the foreclosures opens the door for other first-time buyers. http://www.foreclosurevault.net; Reply to this comment