PLANO, Texas - Southwest Corporate Credit Union reported that June foreclosure filings rose 53% from a year earlier while actual repossessions almost tripled.
According to RealtyTrac, more than 252,000 properties, or one in every 501 U.S. households, were in some stage of foreclosure with Nevada, California and Arizona experiencing the greatest number. To no surprise, these are also the three states with the highest level of subprime, adjustable-rate mortgage issuances in the country.
RealtyTrac also noted that June was the second straight month in which more than a quarter million properties received foreclosure filings. Credit Suisse estimates that about 53% of borrowers with subprime loans will have negative equity in their homes by the end of the year, and the number will rise to 63% in 2009.
All of this is adding to the supply of homes on the market and helping to send home prices falling in many parts of the country. In an effort to reverse the trends, Congress is considering a $300-billion support program to help qualified applicants refinance their mortgage and possibly keep up to 2 million borrowers from potential foreclosure.
To read more about how credit unions are coping with continuing decline in housing values and the effect that decline is having on everything from mortgages to home equity lines of credit, see Credit Union Journal’s special report beginning on page one and continuing on pages 12-15.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
