Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Wednesday, May 14, 2008 at 12:00 AM

E-mail article     Print view

Foreclosure rates soar in April

More U.S. homeowners fell behind on mortgage payments last month, driving the number of homes facing foreclosure up 65 percent compared...

The Associated Press

LOS ANGELES — More U.S. homeowners fell behind on mortgage payments last month, driving the number of homes facing foreclosure up 65 percent compared with April 2007 and contributing to a deepening slide in home values, a research company said Tuesday.

Nationwide, 243,353 homes received at least one foreclosure-related filing in April, up 65 percent from 147,708 in the same month last year and up 4 percent since March, RealtyTrac said.

Washington state sat in the middle of the pack with the 26th-highest foreclosure rate: one home out of every 1,126 was in some stage of foreclosure. That's up 7.3 percent from the previous month and 36.5 percent from April 2007.

Nevada, California, Arizona, and Florida were among the hardest hit states, with metropolitan areas in California and Florida accounting for nine of the top 10 areas with the highest rates of foreclosure, the company said.

Irvine, Calif.-based RealtyTrac monitors default notices, auction-sale notices and bank repossessions.

One in every 519 U.S. households received a foreclosure filing in April. The filings increased from the previous April in all but eight states.

The combination of weak housing sales, falling home values, tighter mortgage-lending criteria and a slowing U.S. economy has left financially strapped homeowners with fewer options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't get refinanced into an affordable loan.

Efforts by government and the mortgage industry to stem the tide aren't keeping up with the rising number of troubled homeowners.

"It's apparent that what they've tried so far isn't working, " said Rick Sharga, RealtyTrac's vice president of marketing.

The U.S. House passed a bill last week that would offer government insurance on $300 billion in new mortgages to refinance loans for an estimated half-million borrowers facing foreclosure, particularly those who owe more than their homes are worth because of declining values.

House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.

Still, should the homeowner-aid package clear the Senate, it faces a potential hurdle in the White House, which has threatened to veto the plan, arguing it's too risky and amounts to a lender bailout.

Even if a legislative compromise is reached, it could come too late for homeowners with adjustable-rate mortgages scheduled to reset to higher rates this month and the next.

More than 1 million foreclosures are forecast for 2008.

Copyright © 2008 The Seattle Times Company

More Business & Technology headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

Bootstrapping taken to new extremes

Brier Dudley: Game industry charting course into unexplored territory

AOL starts new quest with a long way to go

Interface: Intelligent Effects helps bring data to one interface

UPDATE - 12:10 AM
Senate to confront abortion in health care debate

Advertising

Video

4A Championship: Skyline defeats Ferris
Skyline defeated Ferris, 45-21, at the Tacoma Dome to become the 2009 4A football state champions.

3A Championship: Bellevue defeats Liberty
Lakewood vigil for slain police officers
Memorial at the Lakewood Police Station
Suspect killed in South Seattle| Excerpt of police radio
Suspect killed in Seattle | Extended audio of police radio
RAW VIDEO | Press conference on suspect shooting
RAW VIDEO: Scene where Clemmons shot by police
SPD Det. Jeff Kappel speaks about 11-hour standoff
Leschi residents shaken by manhunt

Marketplace

 
Most read
Most commented
Most e-mailed
 
 
Advertising