For those of you hoping that foreclosure crises has hit bottom, we’ve got some bad news. A new report released by the The Pew Charitable Trusts says that 1 in 33 homeowners is expected to be in foreclosure over the next two years, due primarily to subprime mortgages made in 2005 and 2006.
The report goes into detail about how each of the states is dealing with the mortgage meltdown. Everyone is affected, even those without risky mortgages.
More than 40.6 million homes across America are projected to lose value because of subprime foreclosures in their communities, and foreclosures may cost neighboring properties up to $356 billion in home value over the next couple of years, says the report. Also sobering is the news that foreclosure starts involving prime adjustable-rate mortgages increased 158 percent in one year.
The report also claims that the mortgage meltdown isn’t a regional problem for hard-hit states like California, Nevada and Florida. It’s national.
As Exhibit 1 illustrates, nearly every state is feeling the impact of the crisis. A report by the
MBA in March 2008 showed that in 47 states and Washington, D.C. mortgage loans entering foreclosure as of December 2007 had increased by at least 20 percent since December 2006.
Only three states–Alaska, Montana and Vermont Vermont–did not experience at least a 20 percent increase in foreclosure starts; less than 1 percent of the American population lives in those states.