Some Cities Suffering More Foreclosures than Others
California, Florida and Ohio lead the pack of the cities which are badly hit than foreclosure.
The rate of foreclosures continued to increase in the 3rd quarter in most of the 100 largest areas in the country. Stockton,
California has the higher rate of foreclosures, at one for every 31 houses. This was a significant rise of 32 percent from the second quarter, and more than five times of last year’s rate during the third quarter. In Detroit, foreclosure listings increased by 92 percent from the second quarter of 2010. California Riverside-San Bernardo also increased by 39 percent in terms of foreclosures.
The cliché which says that it is all about location is proving to be true when it comes to foreclosure, which is crippling more and more families in the country. The rates in different cities are different from each other, with a handful of areas more hit than the other. California, Ohio and Florida cities hold 17 places in the top 25 foreclosure rates in metro area.
Other areas in the ten highest rates in foreclosures include Fort Lauderdale, Florida; Sacramento, California; Las Vegas; Cleveland; Bakersfield, California; Miami; and Oakland, California. The cities in California hold seven places in the top 25 spots, while Ohio and Florida both have five spots each.
There are still areas in the country which were able to escape the foreclosure tsunami, including North and South Carolina, as well as Virginia.
A large part of the housing loans which were in the first place risky is now experiencing a dry spell, after investors lost their eagerness for such types of loans. This was after billions of dollars with of mortgage-supported papers vanished. This has threatened most mortgage institutions.
Countrywide Financial, a mortgage lending company, said on Tuesday that it shelled out $22 billion worth of house mortgages, a 48 percent decline from the financing that it did last year. The company, one of the biggest subprime loans suppliers to homeowners which have not-so-good credit standings, stated that it wrote $42 million subprime loans in October, a significant decrease from the $3.3 billion financing fund that it gave one year ago.
