With the rash of funny money loans that have been issued, the rising foreclosure rates across the country are not a surprise. There were too many people who could get into a mortgage that was above their heads in the long term. What is especially interesting is that 5 states, Florida, California, Michigan, Texas and Colorado,accounted for almost 66 percent of the foreclosures for the month of September.
The national average for foreclosures was 1 home out of 1,122 homes. Florida was 1 out of 254 homes and California was 1 out of 712 homes. What would be very interesting to see is a heat map of the foreclosures, if they are concentrated in specific regional parts of these states and the rates are much, much higher.
Florida represented the state with the nation’s highest foreclosure activity with approximately 28,000 properties entering some stage of the foreclosure process, accounting for 27 percent of the overall nationwide foreclosure activity, the company says. With 1 new foreclosure filing for every 254 households, the state’s foreclosure rate was over 4 times the national average.
California ranked second with approximately 17,000 foreclosures entering some stage of the foreclosure process, or 1 foreclosure for every 712 households in the state. The state’s foreclosure activity represents a 37 percent increase from the previous month, and a 44 percent increase in Q3 compared with Q2, according to the company’s figures. via the Central Valley Business Times.
For those who were flippers and got out in time in these states, I think that spending the next 6 months learning the foreclosure game and then investing in them in Florida and California could reap some significant benefits. But I would stress spending a good deal of time and energy studying foreclosures as they are not easy money, but have the opportunity to make a good deal of smart money.
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