| Published: | Jul 29, 2010 11:46 AM EDT |
| Updated: | Jul 29, 2010 8:46 AM EDT |
LOS ANGELES (AP) - Households across a majority of large U.S.
cities received more foreclosure warnings in the first six months
of this year than in the first half of 2009, new data shows.
The trend is the latest sign that the nation's foreclosure
crisis is worsening as homeowners battling high unemployment, slow
job growth and an uneven rebound in home prices continue to fall
behind on their mortgage payments.
In all, 154 out of 206 metropolitan areas with at least 200,000
residents posted an annual increase in foreclosure activity between
January and June, foreclosure listing firm RealtyTrac Inc. said
Thursday.
The firm tracks notices for defaults, scheduled home auctions
and home repossessions - warnings that can lead up to a home
eventually being lost to foreclosure.
The latest figures show the threat of foreclosures is spreading
well beyond the top tier of metropolitan areas located in
California, Florida, Nevada and Arizona, which have borne the brunt
of the fallout from the housing crisis.
Those states saw housing values surge during the housing boom
years. When the boom ended, values collapsed and foreclosures
soared.
"The face of foreclosure is driven much more now by
unemployment than in the past, and it's moving out from the places
where we've been focusing on in the last few years," said Rick
Sharga, a senior vice president at RealtyTrac. "The combination of
a weak job market and a weak housing market is making it difficult
in some of these areas."
The Miami-Fort Lauderdale-Pompano Beach metropolitan area in
Florida received more foreclosure-related warnings in the first
half of this year than any other, the firm said.
Florida accounted for nine of the top 20 metro areas with the
highest foreclosure rates.
The latest data echo broader, national foreclosure trends.
The number of households facing foreclosure in the first half of
the year climbed 8 percent versus the same period last year, but
dropped 5 percent from the last six months of 2009, RealtyTrac said
in a report issued earlier this month.
In all, about 1.7 million homeowners received a
foreclosure-related warning between January and June. That
translates to one in 78 U.S. homes.
More than 1 million American households are likely to lose their
homes to foreclosure this year, the firm said.
The latest data included one bright spot: Nine of the top 10,
hardest-hit metropolitan areas saw their foreclosure rates drop
from a year ago. That could suggest foreclosure trends in those
cities, including Las Vegas, Cape Coral, Fla., and Modesto, Calif.,
may have peaked.
"We probably won't know that for sure for another six months,"
Sharga said.
Still, those areas continue to see foreclosure rates that are as
much as five times higher than the national average.
The top 10 metropolitan areas with the highest foreclosure rates
has remained fairly unchanged over the past 12 months.
The Las Vegas-Paradise, Nev., metropolitan area topped the list
with one in every 15 homes receiving a foreclosure warning in the
first half of the year - five times the national average. But
foreclosure filings declined nearly 9 percent versus the first six
months of 2009.
Rounding out the rest of the top 10 metros with the highest
foreclosure rate in the first half of 2010 were Cape Coral-Fort
Myers; Modesto; Merced, Calif.; Riverside-San Bernardino-Ontario,
Calif.; Stockton, Calif.; Phoenix-Mesa-Scottsdale, Ariz.;
Orlando-Kissimmee, Fla.; Vallejo-Fairfield, Calif.; and Miami-Fort
Lauderdale-Pompano Beach, Fla.
The Miami-area metro was the only one among the top 10 to
register an annual increase in its foreclosure rate.
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