"Hot"
Foreclosure Areas - States With Highest Foreclosures Are Warm States
By Cassandra
Black
According to an article on CNN Money, 26 of the areas with the
highest foreclosure rates are concentrated in the states of Nevada,
California, Florida and Arizona. These are traditionally warm states, hot!
RealtyTrac, an internet marketer of foreclosures, states that metro areas
in these four states topped the foreclosure filing list for the first
quarter of 2009. Las Vegas topped the list altogether.
It's peculiar that the states with the highest foreclosure filings are
in tropically warm cities. Ever wonder why? Here are a few personal
theories:
I'd have to guess one reason is that older individuals flock to warmer
climates for retirement, many purchasing homes. We've all heard rumblings
throughout the years of senior citizens being taken advantage of by
predatory lending practices. Foreclosure rates have skyrocketed in warmer
climates where many seniors reside. I wonder how many of these foreclosure
filings are due to unrealistic arms, predatory refinancing, reverse
mortgage, and the like.
Another gander is second homes. Many people buy second homes,
"vacation" properties, in warmer climates. Miami, baby! I'd love to own a
condo on the beach near Sunny Isles one day, but the maintenance fees and
other monthly carrying charges have kept me simply salivating at the
window. But many people have jumped into purchasing second homes in states
like Florida, only to see the market take a dive.
We've seen more than a few harsh hurricane seasons on the Floridian
peninsula over the last decade. I wonder how many condo associations have
suffered because the property insurance wasn't adequate to cover hurricane
damage, which means condo owners likely had to dig into their own pockets
to make up the difference. It'd be interesting to know how many condos in
this scenario contribute to the foreclosure crisis. Just something to make
you go, "Hmmmm..."
Further, the hot states that hold these secondary homes, vacation
rentals, are not as busy with tourists as they used to be re: a recession
riddled with increasing layoffs and deep cutbacks. Lack of disposable
income is simply keeping people close to home. And, in reality, an
investor's second home is also likely to be an investor's second priority
when it comes to making a mortgage payment on the heels of a job loss or
small business shutdown. Many investors are walking away from their
vacation homes in an effort to save their primary residence.
I'd bet my bottom dollar a large number of foreclosures in areas like
Las Vegas are second homes. Las Vegas led the pack with one in every 22
homes receiving a foreclosure filing during the first quarter of 2009.
That's more than seven times the national average. Merced, California ran
a close second with one in every 24 homes. Wow!
Other metro areas on the top 10 list were in the Golden State of
California in areas like Riverside-San Bernardino, Modesto, Bakersfield,
etc., along with the Sunshine State's Port St. Lucie and Arizona's
Phoenix.
Across the board, there are varying reasons why foreclosure rates have
peaked in certain areas, but these are just a few theories why foreclosure
rates have skyrocketed in "hot" areas. To view the full list of areas with
the highest foreclosure rates, visit
http://www.ForeclosureCleanup.biz and click on Foreclosure Rate Data.
Cassandra Black is the author of How To Start a
Foreclosure Cleanup Business, and the Owner of Foreclosure Cleanup,
LLC, Atlanta, GA
Article Source:
http://EzineArticles.com/?expert=Cassandra_Black
http://EzineArticles.com/?Hot-Foreclosure-Areas---States-With-Highest-Foreclosures-Are-Warm-States&id=2264368
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