Foreclosure Rate Grows – National Rate Is 1 In Every 693 Households.

Of course, we all saw this coming…but I don’t think anyone knew it was going to be this bad. With all these people buying houses that they cannot afford in the first place, the foreclosure rate in California, Florida, Michigan, Ohio and Georgia is up 9% from just last month. That’s 179,599 foreclosures in just those 5 states alone in July. Nevada has the highest foreclosure rate in the country: one out of every 199 households and 5,116 foreclosure filings during the month. Yikes.

I guess this is what happens when people making $30,000 buy $500,000 houses and expect to be able to keep them. Wishful thinking I suppose, but nonetheless nearly impossible.

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Comments (2)

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  1. Kit says:

    I understand how people can get into this situation when the unforseen happens (unexpected layoffs, death of a partner, catastrophic medical issues, etc) but for the life of me I don’t understand why people can’t do the math and buy what they can afford!! Furthermore I don’t see how, if they can’t afford it, they are able to get financing.

  2. MoneyNing says:

    Actually it’s probably going to get worst. You just have to see that the worst is when the market was at its peak (roughly 1 year ago) which means all those mortgages with the most risk is resetting their rate this, next and maybe in 2010 depending on the details.