Birmingham Housing Market Climbs up National Foreclosure Rankings

Birmingham ranked 62nd out of 100 major metro areas in foreclosures for the third quarter of 2006, according to RealtyTrac Inc., which monitors foreclosure activity across the country.

The findings countered news that the Alabama housing market also saw home prices dwindle over the last few months.

This should lead to a decrease in future defaults - but for now, RealtyTrac reported the Birmingham/Hoover metro area had a total of 878 properties in some stage of foreclosure in the third quarter, an increase of more than 70 percent from the second quarter of this year.

Nationally, a total of 318,355 properties were in foreclosure proceedings during the third quarter, a 17 percent increase from the second quarter. The most recent total translates to one home loan foreclosure for every 363 households.

Metro areas with the most foreclosure proceedings in the third quarter were Detroit, Fort Lauderdale, Denver, Miami and Dallas, in that order, RealtyTrac statistics show. Atlanta ranked eighth and the Memphis housing market ranked 10th.

“It appears that a combination of factors, including a slowdown in home sales and lower home appreciation rates, are contributing to higher numbers of delinquencies,” said James J. Saccacio, chief executive officer of RealtyTrac.

“It’s also likely that part of the reason for the increased foreclosure rates is the long-anticipated effect of the first wave of adjustable rate mortgages re-setting at higher monthly payments, putting homeowners into financial distress.”