I found a news article on The Creative Investor from RealtyTrac which states nationally, foreclosures were up almost 19% in October over the previous month. At that rate, 1 in every 1,422 households in the nation has entered foreclosure. The states with the largest number of foreclosures were New Jersey, Texas, and New Mexico. Here in Arizona, the foreclosure rate actually dropped by 6.9%.
What surprises me is the Arizona statistic. Actually, in looking at the data state by state, 25 states had a decrease in the number of foreclosures. So half the states in the country experienced a decrease in foreclosures, but the increased numbers in the other states more than made up for them. I would have expected increases in more states. As interest rates rise, it seems inevitable that those with variable rate mortgages will fall behind. However, there is some lag between the interest rate increase and mortgages going into default, since the mortgage company will usually give the home owner a couple of months of being late before starting foreclosure proceedings. Expect more increases in the future and prepare yourself for the opportunities they present!
Friday, December 02, 2005
Foreclosures Increasing Nationwide
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3 comments:
Going off the wall here ... But I wonder if the increase in foreclosures in Texas is due to the stanglehold the legislators here are putting on investors. First they outlaw cash-for-deed deals, and now the essentially outlaw L/O's. Smart investors can work around those using other strategies, but I wonder how many investors who used these techniques solely in the past have stopped buying now? Hmmmmmm.
I have to agree that NJ is seeing a jump in foreclosures. I get about 2 to 4 calls a week from owners looking to sell their properties at market without a realtor so they can just break even.
Tom
"D"igital Breakfast
I was literally a foreclosure statistic for AZ in OCT and the biggest problem I had was getting workers. I would make calls to plumbers, electricians, AC folk or just handyman types and even the return call rate was less than 10%. The primary reason I ended up in ad FC stastic was because I'd have a tennant ready to move in, but couldn't get the place ready for move in in time. Who ever stated that it was hard to get workers in AZ is speaking gospel. I've learned to build a network of workers who are thinking long term. Once they think of me as a potential long term, repeat customer they provide better service (heck, they provide service period).
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