Isn't it always the same pattern?! every problem anywhere is bad for someone, and at the same time, it is someone else opportunity for profit...War time, for example, nations in war are badly damaged, others profits from increasing weapons sales. Home foreclosures are not different...
Nationwide, 318,355 properties entered some stage of foreclosure during the third quarter of 2006, a 43% increase from a year ago and a foreclosure rate of one new foreclosure filing for every 363 households, according to RealtyTrac, an online marketplace for foreclosure properties.
Many cities documented foreclosure rates well above the national average. Leading the foreclosure rate charge were Detroit, Fort Lauderdale, Denver, Miami, Dallas, Indianapolis, Fort Worth, Atlanta, Las Vegas and Memphis.
The sharp increase in foreclosures is due to to higher interest rates, a flat real estate market and the upward adjustment of a large portion of adjustable-rate mortgages taken out in the last few years by many borrowers. In the next 15 months, more than $1 trillion in loans are due to adjust upward, and with such a large volume of these loans set to increase, it is a trend that definitely bears watching.
A slow housing market with a glut of foreclosures presents more opportunities for buyers and investors to find bargains and profit from those bargains - if they have the patience to buy and hold, or if they are able to flip and sell it to residents from other countries with stronger currency than the US dollar, such as UK or Ireland.
I need to add that eventhough I will not say 'no' to a bargain, I still have mixed feelings for those owners...I rather 'catch' them before the end, if I can, so I could support them with the alternatives, as I posted on my blog from 10-30-06 http://activerain.com/blogsview/17475/Avoid-Foreclosure!!
Top 10 Metro Foreclosure Rates - 3rd quarter 2006
Metro Area% of Households in Foreclosure# Households for Every ForeclosureForeclosure Rate to National Average
| 1. Detroit, Mi | 1.25% | 80 | 4.5 |
| 2. Fort Lauderdale, FL | 1.14% | 88 | 4.1 |
| 3. Denver, CO | 1.11% | 90 | 4.0 |
| 4. Miami, FL | 1.10% | 91 | 4.0 |
| 5. Dallas, TX | 1.01% | 99 | 3.7 |
| 6. Indianapolis, IN | 1.00% | 100 | 3.6 |
| 7. Fort Worth, TX | 0.99% | 101 | 3.6 |
| 8. Atlanta, GA | 0.94% | 107 | 3.4 |
| 9. Las Vegas, NV | 0.87% | 115 | 3.2 |
| 10. Memphis, TN | 0.70% | 144 | 2.5 |
| % of Households in Foreclosure: Total foreclosures divided by the total households in a metro. |
| # of Households Per Foreclosure: Total households divided by the total foreclosures in a metro (a.k.a. "Foreclosure Rate"). |
| Foreclosure Rate to National Average: Foreclosure rate in a metro divided by the national average foreclosure rate. |
I've placed a direct link on my mortgage site to my Active Rain blogs reporting the subject and offering alternatives:
www.AbsoluteFloridaMortgage.com/Foreclosure
;)
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