Home Foreclosure Statistics
Foreclosure can be defined as a situation in which the owner of some mortgaged property, such as a house, is unable to pay the interest or periodic amount required to be given to the bank or organization where the property was mortgaged, and hence loses the property to the bank or organization as a form of compensation.
Foreclosed homes seized by banks are especially attractive to buyers because they are generally sold at prices well below the prevalent market price. Foreclosure is a growing phenomenon, especially in the United States of America. In the months of January, February and March alone, i.e. in the first quarter alone, one in every one hundred and fifty nine homes in the United States received foreclosure filings.
According to the United States Foreclosure Filing report, there were 803,489 cases of foreclosure filings, default notices and repossessions in the first quarter of the year 2009 alone. This information reveals that there has been a whopping rise of twenty four percent in cases of foreclosure, compared to the number of foreclosure cases that occurred in the same time frame last year. In general, the number of foreclosures taking place is increasing by leaps and bounds.
Realty Trac, the company that keeps track of all the foreclosure cases that are taking place in the country, declared that the foreclosure figures for March 2009 broke all records and proved to be not only the most number of cases for a given month, but also the highest number of cases for a given quarter. In March, 341,180 cases of foreclosure were reported. These figures indicated an increase of seventeen percent from the figures reported for the preceding quarter.
In addition, the increase in the number of foreclosures since March 2008 was a mind-boggling forty six percent. To counter the number of foreclosures taking place, there is quite a large demand for buying foreclosed property that has been taken over by the banks, especially among investors, and also those people who are about to buy property for the first time. However, the rate at which foreclosures are taking place is so high that the demand for these foreclosed properties is actually falling short of the supply of bank-owned properties.
In the United States, the state with the maximum amount of foreclosures occurring per month is Nevada. In the initial quarter of the year 2009, an astounding 41,296 incidents of foreclosure were reported. This indicates an increase of nineteen percent from the previous quarter’s figures. In addition, the increase from last year’s first quarter is a whopping one hundred and eleven percent! This is equivalent to one house in every twenty seven. The number of auction sales increased by thirty five percent. Also, the number of defaults went up by twenty seven percent.
After Nevada, Arizona and California fall in second and third place respectively in terms of the number of foreclosure filings. In Arizona, one in fifty four houses is foreclosed, while in California, one in fifty eight undergoes foreclosure. Florida, Michigan, Utah, Idaho, Oregon and Illinois are close behind California.