Year-over-year numbers continue to paint a bleak picture for the nation's homeowners as foreclosures rose 57% over their March 2007 numbers. The foreclosure website RealtyTrac posted data showing Nevada, California and Florida having the highest foreclosure rates.
But while the number of homes repossessed by banks are up 129%, the number of home being put up for auction increased only 32% since March 2007. That suggests that more people are simply walking away from their mortgages and letting the lender take possession of the home without putting it up for public foreclosure auction.
You can check out foreclosure rates nationwide and in your area on the new foreclosure heat maps on HotPads.com, as well as browse foreclosures and other homes for sale on our interactive housing search.
I'm becoming more surprised by the day by the number of people just walking away from their homes, even if they aren't in any financial trouble. Just because the value of their homes are declining doesn't mean that walking away now is any better decision than it was a few years ago. After all, with how much they pay in interest over the life of a loan, they'll end up paying a lot more than the home will ever be worth.
Losing a few ten thousand on paper isn't really a loss, and it's not a good justification for abandoning a home. It just contributes to the foreclosure crisis for people who are facing financial hardships and have no other option than foreclosure.
Posted by: foreclosurefish | Wednesday, April 16, 2008 at 11:56 AM