Foreclosures up 55% from July-07

Foreclosures up 55% from July-07 to July-08

The number of properties in some form of foreclosure filing in July was up 55 percent from a year ago and up 8 percent from June, as it was reported today.

The private company RealtyTrac said 272,171 properties were in filings for default notices, auction sale notices and bank repossessions.

The number of repossessions meanwhile hit 77,000 for the month, bringing the total number of homes for sale in the US which are repossessed to 17 per cent.

Nevada continued to have the highest foreclosure rate in July, the company said, at one in every 106 households. That rate was up 97 percent from a year ago and up 15 percent from June.

California was next at one in every 182 properties, and Florida was third at one in every 186 properties. Arizona, Ohio, Georgia, Michigan, Colorado, Utah and Virginia filled out the 10 worst states.

Missouri was 18th worst, at a rate of one in 747 properties, up nearly 73 percent from a year ago. Kansas was 37th, at one in 1,784, up 57 percent from a year ago.

James Saccacio, chief executive of the California-based research company, said in a statement: “The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale

“Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July.”

So the United States is experiencing the highest rate of foreclosures which are revealed to be in Florida and California.

I am adding the comment under this post which was sent by Yanni Raz:

How Can You Save Your Property From Foreclosure

Mortgage insurance companies as we all know are helping banks and homeowners to avoid foreclosures.
Surprisingly as it sounds these mortgage insurance companies will even put some of their own money to help homeowners to make the payments for their homes.

1.Why do mortgage insurance companies willing to put their own money?
2.How can we know if we’re insured by these insurance companies?
3.Why these big corporations help banks and homeowners?
4.Will the insurance companies help the homeowners also if they’re not insured?

Lots of homeowners don’t have a lot of knowledge about their loans. Some people don’t even know their own Interest rate.
So I will assume that most of you out there will not understand the term pmi (private mortgage insurance).

What is pmi?

pmi is a policy which the bank act as the beneficiary and the borrower makes a monthly payment for the insurance of course.

The pmi(private mortgage insurance) protects the banks in bad times like today, when a lot of homes are foreclosing or selling through a short sale and the banks are loosing a lot of money.

When do you pay pmi?

Normally if you buy a house or refinance your existing house there will be a very important issue that can also prevent you from qualifying, and that is the ltv (loan to value).
If you take a loan with more then 80% ltv (loan to value) then you will probably will pay pmi.

Some of us will remember great times that we could loan more then 80% of the value of the home but then we also had to take a second mortgage loan or an equity Line of credit loan of 10% or even 20%, but those days are long over.

Today banks will want you to put more down so you’re not going to let go from the house and also so the banks will have a pmi(private mortgage insurance)to be protected.

I know that it sounds that the insurance companies are just there to protect the banks.

That’s not true they’re helping homeowners too, as I said before that they will help you with payments and they will also partner with credit counseling agencies to help homeowners with their payments.

Insurance companies will try contacting you through phone or they will be mailing you letters to refer you to different websites so you can get an idea what to do next with your home and save your home from a foreclosure.

Mainly what you really need to do if you have any problem with your house and you’re negative with your payments first you should contact your lender.

Your lender will guide you what to do next.

I hope this information will be useful. Please do comment