US Foreclosure Rates Soar to Record Highs in 2009
2009 proved the worst year on record for US foreclosure rates as the subprime mortgage crisis and ensuing economic recession wreaked havoc on American homeowners nationwide. Over 2.8 million properties received foreclosure filings throughout last year according to new data from RealtyTrac. This translates to a 21% surge over 2008 totals and a 120% spike since 2006 when home values peaked just before the devastating housing crash took hold.
The hardest housing markets hit all centered in economically battered states featuring massive unemployment and previous overreliance on vulnerable industries in housing, finance and manufacturing. The top impacted states included:
Nevada – 1 out of every 16 homes (highest risk)
Arizona – 1 out of every 33 homes
Florida – 1 out of every 36 homes
California – 1 out of every 42 homes
Michigan – 1 out of every 53 homes
Other noteworthy foreclosure rate trends in 2009 defining the crisis included:
- 1 out 4 foreclosures came from prime borrowers (not just subprime)
- 718,000 bank repossessions (24% spike vs 2008)
- Over $500 billion lost homeowner equity as values plunged
The widespread real estate mayhem shows negligible signs of slowing anytime soon absent major financial reforms or mortgage modification programs easing resetting adjustable rate burdens on battered homeowners. 2009 will unfortunately mark just another painful milemarker as the tragic housing crisis slog drags onwards with communities, leaders and institutions scrambling mitigating devastating impacts.
Too discrete to give his real age (but certainly in the grizzled veteran bracket), Tom is an Army brat who spent much of his childhood overseas. After moving back to Florida in the 80’s with his family, Tom worked a variety of jobs after college before finding his calling in the mortgage industry. Now, adding his decades worth of experience to this site, Tom hopes to help others with his knowledge.
After working through the 2008 crisis in a hard hit bank, Tom knows only too well the impact his industry has on people’s lives. Now semi-retired, Tom spends his days keeping up with the latest news in the mortgage industry (and finding the odd hour or three to fish).