Although Missouri has the 17th highest foreclosed houses rate in the nation for two consecutive months, the state still experienced a 20.87 percent increase in foreclosures rate compared to April and a whopping 93.32 percent rise from May of last year. Among the many cities, Saint Louis and Kansas are the most hit with most of the Missouri foreclosures coming from the subprime market.
Subprime loans have been blamed for the current foreclosures situation experienced nationwide. Last year more than a million homes were re-possessed and the trend continues for this year. Most of the subprime borrowers were not able to manage the increasing interest rates and found themselves with ballooning mortgage payments. These borrowers were not entirely to blame for their unfortunate situation. Many lenders who tried to earn more commissions during the most recent housing boom engaged in predatory lending practices. They enticed these borrowers with too-good-to-believe mortgage deals, most of them with adjustable interest rates.
Many of these homeowners have initially tried to make ends meet but soon found themselves facing foreclosures. For May, there were 2,751 homes in some stage of home foreclosures. Of course, compared to several states in the Midwest, the number of Missouri foreclosures is still manageable. Nevada is still leading the pack followed by Colorado, California and Florida. Overall, the nation’s foreclosures rate rose by almost 20 percent from last month.
In fact, most of the real estate activities in the state are generated by these foreclosure homes. Aside from being very affordable, the large inventory promises buyers with plenty of choices. On the other hand, sellers of these Missouri foreclosures try to entice buyers by offering to shoulder closing costs or give bigger discounts. Most sellers work in tandem with foreclosure brokers like ForeclosureConnections, in order to facilitate transactions with buyers more conveniently.
More Resources:
- Foreclosed Homes
- Foreclosure Houses in Tennessee
- Foreclosure Homes Search in Orlando Florida
- Forclosed Homes in Houston TX
- Forclosure List in Atlanta
- Virginia Foreclosure Homes
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