U.S. Foreclosures Surge

by: Roy Mehta

The number of U.S. homes in foreclosure jumped 9% from June to July, having climbed almost 93% since the same time last year. Data released Tuesday by RealtyTrac showed that Americans were filing one foreclosure for every 693 households last month. A total of 43 states had an increase in foreclosures since July 2006, but nearly half of them came from just California, Florida, Michigan, Ohio, and Georgia. Nevada had the highest foreclosure rate, filing one per every 199 household. Detroit, filing a foreclosure for every 99 homes, topped the list of metropolitan areas. Rick Sharga, RealtyTrac's executive VP of marketing, said his firm estimates about 2 million foreclosures are going to be filed this year as variable-rate mortgages reset higher, and added, "if they default like the subprimes have been defaulting this year, we won't be out of the woods for another nine to 12 months."

Sources: Press release, Bloomberg
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