Mel's Columbia, SC Blog: Foreclosures Continue to Swell

Friday, October 1, 2010

Foreclosures Continue to Swell

Foreclosures / Short Sales Continue to Hamper Any Real Estate Recovery

According to RealtyTrac Inc., homes in the foreclosure process sold at an average 26 percent discount in the second quarter as almost one-fourth of all U.S. transactions involved properties in some stage of mortgage distress. The discount reflects the average sales price of homes in the foreclosure process compared with properties not in distress, according to RealtyTrac.

Home seizures in August reached a record for the third time in five months, with more than 95,000 repossessions, RealtyTrac said earlier this month. Home prices dropped in July, the eighth consecutive year-over- year decline according to the Federal Housing Finance Agency.

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Basically, foreclosures are adding to a swelling U.S. housing supply as the national unemployment rate hovers around 10 percent and the end of a federal homebuyer tax credit dampen purchases. This makes sales of exisiting homes and new homes very difficult.

Nevada had the highest proportion of distressed sales of any U.S. state in the second quarter, with 56 percent of all transactions involving properties seized by banks or at risk of foreclosure. Arizona ranked second at 47 percent, while California was third at 43 percent. Top foreclosure cities are: Las Vegas, NV; Chicago, IL; Miami, FL; Phoenix, AZ; Orland, FL.

In South Carolina, the counties with the highest number of foreclosures are: Horry, Greenville and Charleston. CLICK HERE for foreclosure activity by county

Need Help with your mortgage? Click on the resources listed below:
HUD.gov - Are you at risk of foreclosure and losing your home?
Help for America's Homeowners