Foreclosure fever still with us…

From a couple of different news feeds that I get comes this story about the still rising foreclosure crisis in America. RealtyTrac, the leading online marketplace for foreclosure properties, has reported that filings increased 12 percent in August from just July. The figures are 27 percent above August 2007 numbers.

“In August the total number of U.S. properties that received foreclosure filings as well as the national foreclosure rate were both the highest we’ve seen in any month since we began issuing our report in January 2005; however, the annual increase of 27 percent was actually substantially lower than in previous months this year, when it was hovering around 50 to 65 percent,” said James J. Saccacio, chief executive officer of RealtyTrac. These numbers are showing that 1 in every 416 U.S. homes received a foreclosure filing.

Certain states have an even higher rate of foreclosures. Nevada holds the lead at 1 in every 91 homes. Michigan has slipped in the rankings number 6, with 1 home in every 490 being in foreclosure; and that’s a good thing.

Economist David Shulman of the UCLA Anderson Forecast says he thinks foreclosures will continue to rise for the remainder of the year as more adjustable-rate mortgages reset, including more so-called "no-doc" loans, which don't require verification of borrowers' income.

Rick Sharga, vice president of RealtyTrac, expects a 35% to 40% jump in foreclosure filings this year over last year.

Some areas are suffering much more than others. Five states -- California, Florida, Texas, Michigan and Ohio -- together accounted for 50% of the nation's total foreclosures in March, according to RealtyTrac. But it was Nevada, Colorado and California that had the top three foreclosure rates for March.

Among cities, California's Stockton was No. 1, with one foreclosure in every 128 households -- a 137% spike from February. Las Vegas, with 4,307 filings, had the nation's second-highest metro foreclosure rate in March, with one foreclosure filing for every 139 households -- more than five times the national average. Other metro areas with foreclosure rates among the nation's 10 highest included Greeley, Colo. (No. 4); Detroit (No. 8) and Denver (No. 9). For a full story from MSN and the complete list of where the fifty state rank in the foreclosure derby, click here.

I can certainly attest to the fact that foreclosures are what most of my buyers want to go see these days and there is no lack of houses to show them. The other thing that appears to be happening in this market, at least locally; is that banks, scared by what has happened recently to some of the largest holders of foreclosed properties, are now in full dump 'em mode. Prices have tumbled on foreclosed houses as the banks try to unload them before they are dragged down by them. Hopefully that will clear out the inventory overhang of these properties. It's still a great time to be a buyer, but this won't last forever; so, get in the market now to get the best choices on great deals.