DTT Buzz

US home owners are facing tough times in a tough market. Home foreclosures for the month of May are up 48% from this time 1 year ago and up 7% from the month of April. Arizona, California, Florida, Michigan, and Nevada are the states that have been hardest hit by home foreclosures. The Metropolitan areas of Florida and California account for 90% of the top 10 areas with the largest amount of foreclosures.

For the US as a whole, 1 in every 483 U.S. households received a foreclosure filing. In Nevada, 1 in every 118 households received a foreclosure filing. In California, 1 out of every 183 households received a foreclosure filing. 50% to 60% of home-owners that receive a foreclosure notice will lose their homes. The rest will be able to sell or refinance.

Some are saying foreclosures will likely peak during the fall. That’s when home loans made to borrowers with poor credit reset at higher rate. It is also likely that home prices will fall another 10% by the end of 2009.

Megan Grant

DaytradeTeam