Foreclosures Down in Hardest Hit Areas, Up in Others

March 11, 2011

Foreclosures Down in Hardest Hit Areas, Up in Others

In January, RealtyTrac released its 2010 Year-End Metropolitan Foreclosure Market Report. The study found that foreclosure activity decreased in six of the top ten hardest hit areas in 2010. Unfortunately, the numbers also indicate that in 72 percent of the nation's 200 top metropolitan areas, foreclosures are on the rise.

The areas hardest hit in 2009 remained on top in 2010, with the same four states, California, Nevada, Florida and Arizona, making up a bulk of the top 20 foreclosure areas. As for cities, Las Vegas continues to suffer the most, with one in nine properties receiving a foreclosure notice in 2010.

California alone had six of the top 20 cities. Modesto, with one in every 14 houses receiving a foreclosure filing in 2010, was the third hardest hit area in the country. The Riverside-San Bernardino, Stockton and Merced areas were also in the top ten. Despite being some of the areas most affected by foreclosures, each city experienced at least a 13 percent decline from 2009 rates, with Merced seeing a 30 percent reduction in foreclosures from last year.

Riverside specifically saw a 19 percent drop from 2009 levels and a nearly 10 percent drop from 2008. There were, however, over 100,000 properties receiving a foreclosure notice last year, representing nearly 7 percent of the total housing units in the area. By comparison, the U.S. as a whole averages one in every 45 housing units or 2.23 percent of the total number of houses.

While there may have been a reduction in the rate of foreclosures in major markets, the report also notes that foreclosures are on the rise in other areas. In 149 of the 206 metropolitan areas with over 200,000 residents, foreclosure rates went up.

According to RealtyTrac, banks have been delaying foreclosures in some areas in hopes that the property values will rise. With so many foreclosures on their books, banks are also leery of flooding the market with underpriced homes which would further drag down the market. According to The Wall Street Journal, this trend indicates that banks may end up holding foreclosures at an escalated period over a longer period of time, hoping to avoid another dip in home prices.

For those who are facing foreclosure, it is important to work with an experienced bankruptcy attorney. There are steps you can take to protect yourself and save your home.

Article provided by Diefer Law Group PC
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