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2010-09-15 16:35:50
Utah Foreclosure Filings Up 55%

The Salt Lake Tribune released this article in late July of 2010. Since this article, the number of foreclosure filings have accelerated even more. Read on to see the consequences of Utah's real estate market.

UTAH'S REAL ESTATE MARKET BEGINS TO DARKEN...

The Wasatch Front’s foreclosure problem continues to grow, a new report shows.

Owners of nearly 8,300 residential properties in the Salt Lake metro area received a foreclosure-related filing in the first six months of the year, according to RealtyTrac, a company that tracks foreclosures nationally. That’s up more than 55 percent from the same six-month period last year.

By comparison, the number of households nationally facing foreclosure rose only 8.3 percent from January to June.

The Salt Lake area was among 154 out of 206 metro areas with a population of at least 200,000 that had an increase in foreclosure activity. But the rate locally tops the national average, with one in every 48 homes receiving a filing, compared with one in 78 U.S. homes.

“Obviously, the numbers are a little depressing,” said Salt Lake City economist Jeff Thredgold, a consultant to Zions Bank.

The numbers mean Salt Lake has the 36th-highest rate of filings among the 206 metros, up from No. 107 only two years ago. Provo-Orem is No. 33 , while Ogden-Clearfield is No. 54.

Metro areas with the highest levels of foreclosure activity, including Las Vegas; Cape Coral-Fort Myers, Fla.; and Modesto, Calif., actually saw declines in filings over the past year. “The face of foreclosure is driven much more now by unemployment than in the past, and it’s moving out from the places where we’ve been focusing in the past few years,” said Rick Sharga, senior vice president at RealtyTrac. “The combination of a weak job market and a weak housing market is making it difficult in some of these areas.”

The RealtyTrac report covers a wide range of foreclosure-related filings, from default notices — in which homeowners are behind on payments but not yet in danger of losing their properties — to notices that the bank is taking possession.

Thredgold said he isn’t surprised activity in Utah has increased, given that the state’s economic and real estate downturn began a couple of years later than in other parts of the country. That means the foreclosure problem will take longer to peak before it eventually starts to fall. Plus, he said, many Utah homeowners have added pressures that many in other states don’t have.

“People here get married earlier, they have children earlier and they have more children, so the financial stresses facing Utah’s homeowners tend to be more daunting, more challenging,” he said.

In the mid-2000s, Utah had one of the most robust economies and lowest foreclosure rates nationwide. The state now has the fifth-highest rate of filings, behind only Nevada, Arizona, Florida and California.

In Utah, defaults and foreclosures started to creep up in 2008, after the real estate market and overall economy began their downturn.

As home sales and prices have fallen over the past two years, more and more home-owners are “underwater,” meaning they owe more than their homes are worth. Many in this situation are unable to sell their homes for enough money to cover mortgages after encountering financial trouble.

In some cases, homeowners can sell their homes via a short sale if lenders agree to accept less than they are owed.

Some lenders also are willing to modify mortgages, which can lower a borrower’s monthly mortgage payment. But either method of avoiding foreclosure can be difficult and time-consuming, and not all borrowers qualify for help.

 
Blog Archive
2012-10-24 15:26:05
Utah's Real Estate Market Makes A Come-Back

2012-03-19 17:02:37
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2012-02-22 08:47:11
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2010-09-16 09:25:06
Nationwide Foreclosure Numbers

2010-09-15 18:34:54
Here Comes The Double Dip In Home Values

2010-09-15 16:35:50
Utah Foreclosure Filings Up 55%

2010-09-14 22:38:30
DON'T FORECLOSE! DO A SHORT SALE!


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