22nd August, 2007

In an indication of the broad effect of the subprime mortgage crisis in the United States, the number of foreclosures - when a person can’t meet their mortgage repayments - has risen by 93 per cent over the past year, according to figures from real estate tracking company RealtyTrac.

The company’s July report showed a total of 179,599 foreclosure filings during July - including mortgage default notices, auction sale notices and bank repossessions, a figure which is nine per cent higher than during June and 93 per cent higher than the figure for July 2006.

The report shows a national foreclosure rate of one foreclosure for every 693 households for the month.

While 43 states experienced rises on last year’s figures, California, Florida, Michigan, Ohio and Georgia accounted for more than half of the total foreclosure filings. Nevada had the highest foreclosure rate for the seventh month in a row with one foreclosure for every 199 households.

In terms of metropolitan areas, Detroit fared worst with a 70 per cent increase in foreclosure activity during July, equating to a rate of one foreclosure for every 97 households. Others in the top 10 for foreclosures during July included six metropolitan areas in California, Las Vegas and Atlanta.

~ www.realtytrac.com

- DAVID ADAMS