Foreclosures spread from bubble markets

An analysis of foreclosure-related filings at the metro level by data aggregator RealtyTrac shows new hot spots emerging in cities not generally viewed as bubble markets, including Provo, Utah; Rockford, Ill.; and Lansing, Mich.

All but one of the 20 metro markets tracked by RealtyTrac as having the highest rate of foreclosure-related filings during the third quarter were located in four states where speculation helped drive up prices during the boom: California, Florida, Nevada and Arizona. Those states also accounted for 37 of the 50 markets identified as having the highest foreclosure rates.

But rising unemployment and interest-rate resets on alt-A and pay-option adjustable-rate mortgage (ARM) loans continue to "gradually shift the nation's foreclosure epicenters" toward areas that avoided the brunt of the first foreclosure wave, said James J. Saccacio, chief executive officer of RealtyTrac, in a press release.

RealtyTrac counted 937,840 foreclosure-related filings during the third quarter, a 5.4 percent boost from the previous quarter and a 22.5 percent increase from a year ago.

Foreclosure-related filings surpassed levels recorded at the same time a year ago in 15 of the 20 markets with the highest foreclosure rates and in 40 of the top 50 markets.

Among the 50 metro areas with the highest rate of foreclosure-related filings, the biggest year-over-year increases were in Boise City-Nampa, Idaho (up 142 percent); Provo-Orem, Utah (up 120 percent) and Salt Lake City, Utah (up 105 percent).

Other metro markets outside of the four boom states experiencing significant year-over-year increases in foreclosure filings included Rockford, Ill. (up 64 percent); Fayetteville-Springdale-Rogers, Ark. (up 53 percent); Lansing-East Lansing Mich. (up 41 percent); and Chicago-Naperville-Joliet Ill.-Ind.-Wis. (up 28 percent). ...CONTINUED

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