Foreclosure rates across the U.S.

U.S. foreclosures jumped 45% year over year in January 2006. Texas, Florida and California had the largest total number of foreclosures, but Georgia, Nevada and Colorado lead the pack on a per capita basis.

There was one new foreclosure for every 1,117 U.S. households in January 2006 compared to the same period a year earlier.  Many economists and industry observers expect the pace of foreclosures to accelerate this year.

Job losses were to blame in states such as Colorado and Georgia, which saw spikes in foreclosure rates of  196% and 144%, respectively, compared to December 2005. Those states topped the list at No. 3 and No. 1 for highest foreclosure rates on a per capita basis. Nevada came in at No. 2.

Risky borrowing practices also have left many homeowners exposed to rising interest rates. Frank Nothaft, chief economist with government-chartered mortgage giant Freddie Mac, estimates one out of every three loans issued in 2005 was an adjustable rate mortgage. He expects $500 billion in such mortgages to reset sometime this year, leaving many with a payment they can no longer afford.

Foreclosure rates across the U.S., ranked from highest to lowest on a per capita basis:

Report Highlights
 

• Despite a 29 percent decrease in new foreclosures from the first quarter to the fourth quarter, Florida documented the nation’s highest foreclosure rate and accounted for more than 14 percent of the nation’s new foreclosures in 2005. The state reported 121,843 properties entering some stage of foreclosure — 1.67 percent of the state’s households.
   
• New foreclosures in Colorado decreased 4 percent from the first quarter to the fourth quarter, but the state’s annual foreclosure rate ranked second highest nationwide thanks to consistently high foreclosure numbers throughout the year. A total of 29,630 Colorado properties entered some stage of foreclosure in 2005 — 1.62 percent of the state’s households.
   
• 1.5 percent of Utah households entered some stage of foreclosure in 2005, the nation’s third highest annual foreclosure rate. The state reported 11,536 properties entering some stage of foreclosure during the year, but new foreclosures dropped 27 percent from the first quarter to the fourth quarter.
   
• New foreclosures in Texas increased 54 percent from the first quarter to the fourth quarter, and the state documented the nation’s fourth highest annual foreclosure rate. A total of 115,643 Texas properties entered some stage of foreclosure in 2005 — 1.44 percent of the state’s households and more than 13 percent of the nation’s new foreclosures in 2005.
   
• Other states with foreclosure rates ranking among the 10 highest nationwide were Georgia, Arizona, Indiana, New Jersey, Ohio and Tennessee. All of these state documented annual foreclosure rates of at least 1 percent of total households and reported new foreclosures increasing from the first quarter to the fourth quarter.
   
• Although their foreclosure rates ranked below the nation’s 10 highest, California, Illinois, New York and Michigan were among the 10 states reporting the most new foreclosures in 2005. California reported 61,563 properties entering some stage of foreclosure, and new foreclosures increased 16 percent from the first quarter to the fourth quarter. Illinois reported 46,723 properties entering some stage of foreclosure, and new foreclosures decreased 14 percent from the first quarter to the fourth quarter. New York reported 37,068 properties entering some stage of foreclosure, and the state reported more than twice as many new foreclosures in the fourth quarter as in the first quarter.

2005 Foreclosures by quarter