Home Mortgage Foreclosures Rise 90 Percent

If you want to buy a home at a bargain price, today’s housing market is tailor made for you. America’s cooling market is not only driving builders and sellers to slash asking prices, but it is also resulting a rise in the number of forecloseures.

According to RealtyTrac, U.S. home mortgage foreclosures in May 2007 jumped 90 percent over May 2006. Foreclosures in May increased by 19 percent over April.

The number of home mortgage loan foreclosure filings for May is the highest recorded since RealtyTrac began recording foreclosure figures.

“After a barely perceptible dip in April, foreclosure activity roared back with a vengeance in May,” said James Saccacio, chief executive officer of RealtyTrac.

And it appears the worst is yet to come.

“Such strong activity in the midst of the typical spring buying season could foreshadow even higher default levels later in the year,” he said.

“Certainly not every community nationwide will see a boom in foreclosures, but foreclosed properties are becoming more commonplace and adding to the downward pressure on home prices in many areas.”

Some states are being hit harder than others. California, Nevada mortgage, Colarado, Florida and Ohio home loan problems lead the nation when it comes to foreclosures.

In May alone, 39,659 California mortgage foreclosures were filed.

The massive jump in the number of homes falling into foreclosure in America is another sign of economic trouble in the U.S., and it may get worse.

Banks and finance companies designed creative new home loans to help people purchase bigger, more expensive homes, or use up home equity from their existing real estate.

Credit flowed like water and bad credit mortgage lenders lent money to people they knew were at least a little likely not to repay the loan.

Now, all this financial mismanagement is seeing a backlash. Times are clearly getting tougher for home loans.

If you are interested in stablizing your financial picture and building some greater security, start with your mortgage. Your home is the biggest investment you likely ever have. Consider mortgage refinancing before rates rise and it’s too late.

SOURCE: The Trumpet