3 Cities Badly Hit By US Foreclosure Activities

Posted on August 16th, 2007 by hinson

The most prominent state Washington is witnessing the highest foreclosure listings. According to the recent report released by RealtyTrac, during the initial six months of the year 2007, the automobile capital has seen a drastic rise in the foreclosure rate that has badly hit the economy of the nation. There are three cities namely Stockton, Detroit and Las Vegas that have suffered the most from the increasing foreclosure activities. This crisis has wreaked havoc on not just the urban areas, but also devastated the areas lying in the heart of nation.

On an average, one out of every 27 households is being auctioned. Stockton lies at the top in the list of foreclosed properties in the metro areas of the US. Today, the city of Stockton is not just popular for being the producer of grapes, almonds and tomatoes, but is also known for being a lucrative market for the people seeking cheap housing options. It has become a breathing place for people residing in Southern California as well the areas surrounding the Bay.

In the Stockton city, foreclosure filings were made on near about 4,239 households in the first half of the year 2007. The number has doubled in comparison to the last six months. The second position next to Stockton has been occupied by Detroit in Michigan with one out of every 29 properties being foreclosed. Detroit is facing a tough situation, as many people who were engaged in the automobile industry have lost their jobs. Las Vegas is following Detroit with one out of every 31 houses being put on auction.

There is an abundance of foreclosed homes in Las Vegas, for which there are very few buyers. The real estate investors and homebuyers have started drifting away from the foreclosed properties, which in turn has brought down the value of these properties. This has aggravated the problem by manifold times, thereby worsening the situation. The major factor responsible for the horrifying situation prevailing in the entire nation is the easy availability of the sub prime loans to the homebuyers.

Most of the borrowers take the unconventional loans without even realizing its aftermaths. This tough situation is calling for action. There is a need to stop the easy accessibility of the sub prime loans and at the same time make the lending standards strict. Other areas that are heading for doom are Riverside-San Bernardino, Bakersfield, Miami, Calif; Sacramento and Memphis.

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