Friday, March 7, 2008

Foreclosures Hit New Highs

The number of homeowners delinquent on their payments rose to over 6% nationwide in the fourth quarter of 2007. More than 2% of homes were in foreclosure during the same time -- the highest level since record-keeping began in 1975. The California foreclosure rate is slightly higher than the national rate -- 2.23% of mortgages vs. 2.04% nationally. A challenge to reducing the foreclosure rate is that many homeowners in foreclosure have little, none, or negative equity in a property. About 35% of homeowners nationwide own their homes "free and clear", with no mortgage.