In July, there were more than 360,000 properties with foreclosure filings including default notices, scheduled auctions and bank repossessions an increase of 7% from June and 32% from July 2008, according to RealtyTrac, an online marketer of foreclosed homes. The jump occurred as several foreclosure moratoriums phased out. They were initiated by many states to give the administration's foreclosure-prevention efforts time to work. But for many help did not come: The modification and refinancing programs have met with less success than hoped.
RealtyTrac cited the two primary reasons as being due to option ARM resets, triggering defaults and more prime loans, which are failing due to job losses. The worst hit areas continue to be in the "sand states", with California posting the highest number of total filings 108,104, and Nevada posting the highest rate of foreclosure at one for every 56 homes. The other hardest hit states are Arizona, at one filing for every 135 homes, and Florida, at one for every 154. Las Vegas, with one for every 47 homes, had the highest rate among metro areas. That's Sin City's 31st consecutive month topping the list. These were bubble states, where home prices soared and banks financed mortgages for anyone who could fog a mirror. The firm stated the highest levels of foreclosures were in the markets that had the highest appreciation [during the boom] and the worst lending practices.
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