 A substantial 233,001 homes were affected by foreclosures in January, 8% more than in December, according to RealtyTrac. And a staggering 45,327 homes were lost to bank repossessions.
The soaring numbers were just another indication of the country's deepening housing dilemma. On a more positive note, however, the month-to-month increase in foreclosure rates was relatively modest, according to CNNmoney.com. RealtyTrac's chief executive James Saccacio attributes the modest month-to month increase to "some of the efforts on the part of lenders and the government - both at the state and federal level - which are beginning to take effect." Although the efforts to prevent foreclosure seem to be working, many wonder if the efforts are just delaying the inevitable for many homeowners who cannot afford mortgage payments. "The big question is whether those efforts are truly helping homeowners avoid foreclosure in the long term, or if they are just forestalling the inevitable for many beleaguered borrowers," Saccacio says. However, banks and lenders refute these claims by noting their increased efforts to freeze pre-reset interest rates and lower existing balances. And still feeling the main brunt of the subprime crisis, California, Nevada, and Florida led the nation with the highest foreclosure rates again in January. California led the way with more than 57,000 foreclosure filings; Florida totaled over 30,000 foreclosure filings; and Las Vegas, NV topped the list with the most foreclosures of any city. Foreclosure rates have soared over the past year due to the reset of Adjustable Rate Mortgages to much higher, unaffordable interest rates. Stagnating home prices and more stringent lending practice have also contributing to the housing crisis. (Written by: K. Skowronski)
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