New Foreclosure Hot Spots Emerge in Third Quarter

October 28, 2009 No Comments »

foreclosed home

While cities in California, Florida, and Nevada continued to account for the 10 highest foreclosure rates among metro areas in the third quarter, five reported decreased year-over-year activity, according to RealtyTrac.

Meanwhile, new foreclosure hot spots emerged, including the Chico, CA metro, where foreclosure activity was up 98 percent year-over-year, and the Reno-Sparks metro, where activity was up 80 percent from a year ago, per RealtyTrac’s Q3 2009 Metropolitan Foreclosure Market Report.

The Prescott, Arizona metro saw a 77 percent increase in foreclosure filings, foreclosure activity in Jacksonville, Florida and Rockford, Illinois jumped 64 percent, and the Lansing-East Lansing, Michigan area saw a 41 percent increase.

“Rising unemployment and a new variety of mortgage resets continued to gradually shift the nation’s foreclosure epicenters in the third quarter away from the hot spots of the last two years and toward some metro areas that had avoided the brunt of the first foreclosure wave,” said James J. Saccacio, chief executive officer of RealtyTrac, in a release.

“While toxic subprime mortgages drove much of that first wave of foreclosures, high unemployment and exotic Alt-A Option ARMs are spreading the foreclosure flood to more metro areas in 2009.”

Among the top 50 metro foreclosure rates, the biggest movers year-over-year included Boise City-Nampa, Idaho, and Provo-Orem and Salt Lake City, Utah.

The Las Vegas metro continues to post the nation’s highest foreclosure rate, with one in 20 housing units receiving a foreclosure notice during the quarter, up nine percent from the previous quarter and 54 percent from a year ago.

Viva Las Vegas…

Leave A Response