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The race started in 1998. Since then St. Louis County has come first with the highest number of foreclosure units. Most of these are concentrated in North County. There is no hope of the pace slowing down – rather it is picking up. Another wave of house owners are about to get entrapped. Since 2001 foreclosure figures have been steadily rising. The areas of concentration are those with the highest number of sub-prime borrowers.

The sub-prime market was created with the specific purpose of giving those with weak credit a chance to avail of loan and have a house of their own. The initial offers were teasers but later interest rates rose together with the threat of various penalty clauses. The sub-prime loans are suspected to be main culprits behind this foreclosure storm raging across the length and breadth of America. Most of the borrowers are finding it beyond their means to cope with increased monthly installments.

Sub-prime loans are most found in low-income zones. In these areas the sub-prime loans comprise of 54% of the mortgage figures. Areas with the highest number of foreclosure filings are identical with regions with the most sub-prime borrowers. These pockets are Dellwood, Spanish Lake, Ferguson, Bellefontaine Neighbors, Jennings, Berkeley, Pine Lawn and Glasgow Village. It should be noted however that the figures may be confusing because it includes only those units that are going through the foreclosure process and not the numbers owners are filing.

Foreclosures are not isolated zones – its effect touches the entire neighborhood. Real estate prices fall en masse. As such the community development of the regions is being affected. Various agencies have come up to succour help but even they are running out of funds because of the sheer pressure of increasing numbers. It is apprehended that another tidal wave will hit the markets in October because that is the time when another bunch will have to face the music of rising interest rates.

The counseling groups are more than just busy with having to attend to more than 150 calls per day. One agency is tackling 1,040 mortgage cases from Saint Louis alone. The agencies give financial help by often mixing one available fund with another. But all avenues are drying up and by Octobers things will be really bleak. The borrowers are being repeatedly advised to contact a national hotline that has been set up.

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According to surveys conducted in June this year on the residents of Sarasota County 11% were either directly or indirectly affected by foreclosures. Banks and other lenders had taken back a huge chunk of property due to failure on the part of the borrowers to pay back dues. This was a fall out from rising interest rates. 46% of the locals were keen to get an opportunity to buy back the houses they had lost. 22% were against it.

Interest and indifference to buying back seemed to be related to income figures. 71% of the surveyed individuals with an income of at least $100,000 were agreeable to the idea of buying up a foreclosed property. The information has been released by reliable sources connected to the insurance industry.

Apart from income another deciding factor is the location. More people – about 66%, residing in Miami-Dade County, 65% of Naples respectively are positive about purchasing a foreclosed unit. In Gainesville, famous for being the location of the University of Florida, the percentage of positive thinkers is fairly high. Here 29% have been involved in some way or the other with the foreclosure burps.

In Florida the picture is different. Here the yardstick is not connected to either location or income. In each market survey 10% and 15% of each of three different income groups have somehow been related to the foreclosure happenings

According to current statistics Sarasota County continues with its lead in Foreclosure listings. There have been 383 notices – inclusive of default, auction and repossession in July this year. Of the 67 Florida states it ranked 16th. The figures have been compiled by a top tracking online group who has been pioneers in this field of survey.

Manatee and Charlotte Counties with 264 and 123 listings ranked 21st and 24th respectively. Taking into consideration the total foreclosure numbers in relation to number of households Sarasota County had one foreclosure for every 564. In Manatee it is 1:609 and in Charlotte 1:744.

The figures of Florida as a state showed a per-capita average of 1:431. Thus this Sunshine State ranks 7th in the country with 1.6 times the national standard. A survey conducted by The Attorney’s Title contacted 1,415 house owners focusing on Sarasota County, Tampa, Fort Myers-Naples, Gainesville, Miami-Dade County, Orlando, Tallahassee and West Palm Beach. The errors in sampling are not more or less than 2.6%.

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Figures speak for themselves. The numbers are frightening. In the Capital Region since the previous year foreclosures have increased by as much as 200%. In Albany County the jump is 63%. From 32 last July the numbers have gone up to 52 this July. In Saratoga County the situation is alarming with a 2500% high-jump. In July 2006 there was only one filing but this year it has risen to 25.

Democrat Senator Schumer of New York is of the opinion that it is the mortgage agents who have cajoled people to get into a situation which was beyond their means. The borrowers fell for the smart talk and overstretched their means.

Foreclosures are not isolated events that stay confined to a no-entry zone. The foul stink affects the entire neighbourhood. The other property units within 1/10th radius of the infected one will lose its equity by 1%.

Schumer has a three fold plan to fight the cancer. A full stop must be made on advertisements that do not specifically say when interest rates on a loan will escalate. Mortgage lenders must be federally licensed. This will sift the sugar from the sand. These sentiments are being echoed by the soon-to-be president of New York Mortgage Brokers. The group had been fighting for a decade for New York to join 47 other states in obtaining licensing permissions and insisting on financial education schemes. Schumer also wants registered brokers to forward sub-prime loans and create a $100 million fund to save foreclosure victims. Keeping these points in view he has submitted a bill.

The Senator opines that the average man is understandably ignorant about the clauses in fine print. It is the duty of the lender to educate them and warn them in this regard.

One of the unfortunate victims is William Cook of Schenectady who is caught in a snare – on one side is the foreclosure and on the other a sudden disablement. A non-profit organization has come forward to stop the roof falling from above his head. Cook is optimistic if the interest rates return to the original number then he will be able to brave it out and survive. But the moot question is – can Schumer’s plans bring under its umbrella thousands of Cooks suffering across the country?

The sub-prime programme itself was not weak. It gave a chance to many to own houses.

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Foreclosure homes are always preferred by knowledgeable buyers. Why? Because they know very well that foreclosing of housing property arises by default in payment by the borrower/house owner for many reasons – death, bankruptcy, relocation to other places or simple inability to meet the repayment schedule by reason of soaring prices and so on. All the foreclosed housing properties need not necessarily be in bad or dilapidated condition and even sound and beautiful homes can also fall into this category by one of the sudden developments listed above.

Talking of buying and selling of housing properties, location gets the top priority. On that count Washington merits high in the entire U.S. states, nicknamed as the Evergreen State, because of its credentials. As an investment for future by way of renting and getting a steady monthly income or reselling with sizeable margins to people who have an eye in such locations always or for use as your own residence, Washington State can be selected easily for the purpose. Whether your proposal is for a modern home in the best sought after Seattle by flock of people or convenient farm house in the suburban areas for living in peacefully, Washington is the best bet.

Next comes the timing. As in any other business appropriate timing is essential for plunging into action to get advantageous mileage in realty business. You must have seen the financial news headlines screaming about the fall in property asking rates nationwide, activity levels in the realty sector declining very fast in all the states and the number of foreclosed properties coming for sale steadily on the increase when compared to the recent past of last year. As per latest figures in August there is an unbelievable 24% increase in foreclosure activities in the entire U.S. and the number of “distressed properties” as they are called – to be in some stage of the foreclosure process – is a whooping 115,292.

In the state of Washington alone, the following figures are very obvious to reveal facts:

No. of homes available for sale as per Multiple Listing Services (that is all varieties, single family homes, multiple family residents, condominiums, town-homes, vacation homes etc.) = 66,647
Average Price = $339,950
Brand new homes ready for sale = 676
Average Price = $342,900
Foreclosure homes = 6,325
Average Price = $171,000

Thus it can be seen from the above statistics that foreclosure homes are priced just 50% of the average market value of secondary homes or brand new homes.

Hence this is the best time to embark on your proposed activity in realty business and especially in an ideal state like Washington which is the cultural center, industrial center and abundant in natural wealth of the U.S.A.

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The foreclosure floods have not been able drown Central Texas according to reliable tracking sources. Two metropolitan areas and nine counties had been surveyed. Except for Bastrop County all the other showed a decline in listings as compared to last year. In Hays County and Williamson County the drop was by 22%. Comal County, Guadalupe County, Austin metropolis and San Antonio recorded 14%, 19%, 21% and 9% decline respectively. But in Bastrop County it was up by 19%.

In Hays County foreclosure rumblings have declined for the first time since 2003. In the language of numbers the decline is by 9%. Last year 710 numbers of foreclosures have gone down to 647 this year. The total value of properties posted this year amounts to $91 million. This is the lowest point since the last four years.

Austin is the only important city to see foreclosure weather conditions improve. It should be noted however that the betterment is relative because as compared to national figures the numbers are still comparatively high.

In 1989 a crisis had hit the nation. In some ways it was similar but there are differences. In 1989 the storm was stirred up by unemployment in the oil and financial sectors but today the reasons are extensive and all embracing. The main accusing finger points to the sub-prime mortgage sector. Easy lending had led to this fiasco. But this alone cannot explain 5,300 foreclosures during nine months. Coupled with it are other factors like increase in living expenses, credit card debts, spiraling of all round interest rates and difficulty in filing for bankruptcy. The situation is so complex that no easy solution can be worked out within a short span of time. It will need careful planning and years for proper execution of the same.

The main reason for the crisis, which has affected various corners of the globe, is the encouragement of a debt culture. It has become a fashion to be in debt – something to be proud of.

People borrowed today without thinking about tomorrow. It was naïve thinking to hope that tomorrow things would look up. Unemployment, unforeseen health emergencies, divorce and death – common stories of life were not taken into account. In the blame game everyone is trying to collar everyone else. But what is required is a comprehensive global outlook where no single cause can be the sole culprit.

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