Industry News

Highest real estate foreclosure rates found in Sun, Rust belts

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Indianapolis, Atlanta and Dallas have the highest foreclosure rates among the nation's 100 largest metropolitan areas, according to an industry report released today. RealtyTrac's 2006 U.S. Metropolitan Foreclosure Market Report found that cities in the Sun Belt and Rust Belt generally had the highest foreclosure rates in the first quarter of 2006, while cities in the Northeast and Gulf Coast documented some of the lowest. "Indianapolis narrowly edged out Atlanta as the city with the highest foreclosure rate in Q1," said James J. Saccacio, chief executive officer of RealtyTrac. "Most of the cities with the highest foreclosure rates have above-average unemployment rates and below-average home-price appreciation. Unemployment is a major reason why homeowners stop making mortgage payments, and slow home-price appreciation can make it harder for homeowners in default to refinance or sell to stop foreclosure." Saccacio added that other economic factors such as decreasing affordability, ri...