Thursday, June 13, 2013

5 States with higest foreclosure rates

June 13, 2013

5 states with highest foreclosure rates

Despite housing’s recent gains, foreclosures are rising once more




Photo: Getty Images

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Although the housing market is recovering in many regions, new research suggests there’s still some cause for concern: Foreclosures are on the rise again. After hitting a 75-month low in April, U.S. foreclosures rose 2% in May and bank repossessions jumped 11%, according to data released Thursday by RealtyTrac, a real-estate data firm. The increase comes after five straight months of declines. The good news is that May’s drop aside, foreclosures are still down 28% for the year, thanks to stronger markets in Arizona, California, Georgia and Michigan.
Those that have managed to hold on to their properties through the downturn are faring batter. The number of U.S. mortgage holders owing more than their homes are worth fell below 20% in the first quarter, according to CoreLogic, from 21.7% at the end of last year. “The negative-equity burden continues to recede across the country, thanks largely to rising home prices,” Anand Nallathambi, president and CEO of CoreLogic, said in a statement.
The specter of further foreclosures persists, however. “The foreclosure problem was not resolved; it was simply delayed,” says Daren Blomquist, vice president at RealtyTrac. He expects this to continue until the banks catch up with the backlog of delayed foreclosures. Bank are repossessing more homes precisely because higher prices are making it easier for them to unload the properties, Blomquist says, “but the recovery has strengthened most local markets enough to quickly shake off a few more blows from these nagging foreclosures.”
In May, one in 885 homes in the U.S. had a foreclosure filing, according to RealtyTrac. Here are the 5 states with the highest foreclosure rates.
— By Quentin Fottrell

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