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Foreclosures Jump Nearly 60% in February, Experts Predict More on the Way

Foreclosures across the country rose nearly 60% during the month of February according to new reports released by ForeclosureConnections today, indicating that the trend of growing foreclosures in 2008 is going forward as predicted.

According to ForeclosureConnections’s analysis, February saw more than 230,000 homes nationwide entering into some stage of the foreclosure process. This number was almost two thirds higher than the statistics for January. Another interesting aspect of the report shows that bank seizures, the repossession of homes due to bank foreclosures, nearly doubled within the same time frame, indicating that a growing number of people are finding it difficult to do anything to avoid foreclosure once they get into default.

As they have for the past few months, California, Nevada and Florida were at the top of the list for states with the highest foreclosure inventories. Nevada currently hold the highest rate of foreclosure, while California, due to its size, holds the highest total number of homes in foreclosure.

“We’re expecting 2008 to be one of the biggest years ever for foreclosures and foreclosure investing,” remarked ForeclosureConnections market analyst Duane Petersen. “The sheer number of adjustable rate mortgages primed to reset, and the sluggish market with declining property values is going to lead to booming foreclosures, even more so than we’ve already seen in the past 3 years.”

Experts forecast that roughly $450 billion worth of adjustable rate mortgages are going to go into periods of adjustment this year, meaning high monthly payments and more default problems for many homeowners who may have up until now avoided the trend. Petersen believes that the rising number of foreclosure homes also has to do with the inability to sell property on the open market.

“With property values as low as they are, it’s impossible to sell off these homes for anything close to what many people paid for them. And to make matters worse, refinancing is just as difficult now. The banks have gotten such heat for the problem, they’re making it really hard for people to secure new loans, but really that’s only going to contribute to the problem at this point.”

However, Petersen is careful to point out that this could also lead to a situation in which investors and homeowners can work together. Since selling on the open market is not an option, more and more people are turning to selling their homes themselves as pre foreclosures to avoid a credit-ruining foreclosure.

“More properties on the foreclosure market mean lower prices, sure, but you’ve also got more homeowners looking to sell to foreclosure investors. I’ve seen buyers and homeowners come to some great pre foreclosure deals that benefit both buyer and seller, and hey, that can be a great feeling.”

ForeclosureConnections specializes in providing accurate and practical information, news and analysis of the foreclosure market that homebuyers and investors can use to find great deals on real estate. ForeclosureConnections is also a leading provider of foreclosure listings and information on homes in foreclosure.

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