Lending Guidelines, Real Estate

For the Second Month in a Row, Foreclosures Are Concentrated in 3 States

May 13, 2009 by · 1 Comment 

For the second month in a row, the country’s foreclosure activity was dominated by a small number of states.

As shown by the latest stats from RealtyTrac.com, more
than half of the country’s foreclosure actions from April were concentrated in just 3 states:

1. California
2. Florida
3. Nevada

Those 3 states are home to but 19 percent of the U.S. population.

No matter in which state you live, however, it’s important to understand the far-reaching ramifications of foreclosures.

Although real estate is local, mortgage lending is not. Fannie Mae and Freddie Mac insure loans in all 50 states and when those mortgages go into default, the government entities often take losses.

This is the primary reason both Fannie and Freddie asked for government aid to the tune of $19 billion and $6 billion, respectively, last week. It’s also the reason why loan fees have increased over the last 12 months — another way to shore up balance sheets is to raise consumer charges.

Furthermore, downpayment requirements are larger than before foreclosures proliferated and private mortgage insurance is more expensive, too.

These are important changes to homeowners in all states — not just the 3 named above. In some cases, they can be the difference between a home loan approval and an underwriting turndown.

Search the complete April 2009 foreclosure report for yourself on RealtyTrac’s website.

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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Comments

One Response to “For the Second Month in a Row, Foreclosures Are Concentrated in 3 States”
  1. lidiya says:

    Hi,

    We have just added your latest post “My Mortgage Blog – Benchmark Mortgage – The Barath Group: For the Second Month in a Row, Foreclosures Are Concentrated in 3 States” to our Directory of Foreclosure . You can check the inclusion of the post here . We are delighted to invite you to submit all your future posts to the directory and get a huge base of visitors to your website.

    Warm Regards

    Foreclosu-re.info Team

    http://www.foreclosu-re.info

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