Foreclosure Across the US At An All Time High

by Peter Vernon on Foreclosure Rates

It almost seems like the country is burning in a raging fire except that the fire is more of an unbearable heat created by the rising rate of foreclosure homes. Whether it is the beautiful beach city of Miami or the Mega structure city of New York, none of the cities and their counties have been spared. More than a fire, the rising number of foreclosure homes is spreading faster than an epidemic. In fact, the reason for such a high number of government foreclosures is being attributed to the adjustable rate mortgages.

In the recent past, it has been noticed that the percentage of mortgages that have resulted in foreclosed homes has hit a record high especially in the 3rd quarter of 2007. This means that there were almost 1.5 million homes that went into the foreclosure process last year. The Subprime ARM or adjustable-rate mortgages have been identified for being the main reason behind the sharp increase in bank foreclosures. Almost 43% of the outstanding loans in the third quarter of 2007 were ARM as compared to the 6.8% outstanding ARM at the start of the year.

But blaming the ARM for every foreclosure would be unfair as there were delinquency rates among other loan types too. This is bad news for new borrowers as well as old ones because it just goes on to show that the foreclosure scenario is getting worse.

Information regarding any of the foreclosed homes can be found in foreclosure listings and can be easily bought through public auctions. The fact of the matter is that on one hand, the foreclosure is taking its toll on home owners and on the other hand, it is opening a great avenue for opportunity for investors. This is actually the right time to buy foreclosures for sale. You can take a membership at bankforeclosuresale.com and get an extensive list of properties that are being auctioned. For every investor, this is the golden era of buying property.

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