“While 43 states experienced year-over-year increases in foreclosure activity, just five states — California, Florida, Michigan, Ohio and Georgia — accounted for more than half of the nation’s total foreclosure filings,” said RealtyTrac Chief Executive James J. Saccacio.
Nevada posted the highest foreclosure rate: one filing for every 199 households, or more than three times the national average. It reported 5,116 filings during the month, an increase of 8 percent from June.
Georgia’s foreclosure rate was more than twice the national average, with one filing for every 299 households. The state reported 12,602 foreclosure filings, up 75 percent from June.
Michigan reported 13,979 filings in July, a 39 percent spike from June.
As far as Georgia’s high foreclosure rates goes, we’ve led the nation in real estate fraud for several years now. All those bad lending practices are now coming home to roost. It’s bad for those who were scammed, but there really isn’t any other alternative.
On the way to the grocery I pass lots of For Sale signs. There is one house that has been off and on the market for some time and now there is a new company’s For Sale sign with a rider that says “Bank Owned”. This summer the MLS had over 3000 more houses listed than this time last year. The bubble has broken. After selling expenses, some people will not be able to get what they paid for the house. Many will not be able to sell for the amount of the mortgage. Morgage companies have encouraged appraisals higher than the real value of the house. But I don’t say the people were scammed. A lot of them just didn’t do their homework. Disclosure rules require that purchasers be told what their payments will be, but home equity loans, 100% loans and adjustable rate mortgages have put a lot of people in serious trouble. Credit is alluring, almost addictive for some.