Foreclosure Statistics
Homer Forteza on Nov 26 2008 at 8:40 am
Foreclosure on a home is when a lender must recover the money owning on the loan. A home must be foreclosed (or taken from the owner) if payments can no longer be made. Currently many countries are experiencing a high rate of foreclosure due to financial turmoil. In the United States, millions of families have lost their home to foreclosure as more and more people find themselves in financial trouble and unable to meet their loan commitments.
The bank or lender then has no choice but to seize the property and then sell it to recover costs. This usually means selling the house for the minimum required price in order to recoup the debt – resulting in an opportunity for savvy buyers.
Some current statistics on home foreclosures in the USA are outlined below:
- Foreclosures in June 2008 had increased by 53% compared with June 2007.
- Over 250,000 home foreclosed in both May and June 2008.
- Around 6.35% of home loans in the USA fell delinquent in the first half of 2008.
- One in 20 homes are in foreclosure in Manassas Northern Virginia, making it one of the hardest hit regions.
- In April 2008, over 14% of homes for sale in the US were a result of foreclosure.
- 1 in every 200 homes will undergo foreclosure each year.
- 250,000 families enter into foreclosure every three months.
Some foreclosure statistics from the Mortgage Bankers Association show some startling facts:
It is also alarming to know that many people who are close to foreclosure are not aware that they can possibly avoid it by taking particular actions. A Freddie Mac/Roper poll in 2005 found that 6 out of 10 home owners wanted to understand the details of the mortgage better and the same number of people were not aware that lenders can offer services and help to people having issues paying their mortgage.
These statistics prove that people need to become more educated about foreclosure and the options available to them when times are tough. Foreclosure statistics like these are alarming but with the new President determined to tackle the financial crisis, things may be looking up in the near future for home owners.