As the economy and housing market continue their rebound, new reports show that nationwide foreclosure rates are at their lowest level since 2006. While this is generally good news for homeowners struggling with mortgage debt, the reality is that foreclosure still remains a challenge for many homeowners. Approximately 57, 286 homes were foreclosed upon last month, the lowest level in seven and a half years. However, while foreclosure rates are generally low, there’s wild variance throughout the nation.
Mortgage Debt Continues to Be a Problem
Local and state economies are some of the largest driving factors of homeowners struggling with mortgage debt. These mortgage debt issues are represented in areas by high foreclosure rates that refuse to lower or even worsen as the nationwide figure continues to lower. Even in areas where the foreclosure rate has fallen, the economic situation is still dire.
Take Utah for instance, which has already seen a 23 percent decrease in the number of foreclosure filings in the first half of 2013. Despite this massive drop, mortgage debt continues to be a problem, as Utah remains the 16th highest state for foreclosure. In other words, while progress is being made, mortgage debt remains a pressing challenge for homeowners.
In fact, in Lower Hudson Valley in New York, foreclosure rates have doubled. Compared against this similar point in 2013, there have been 58 more foreclosures in Lower Hudson Valley since the turn of the new year. These increased foreclosure filings in the area showcases the direct effect that the local economy, land values, and jobs have on mortgage debt.
Despite national good news, Miami retains its title as the metropolitan area that struggles the most with mortgage debt. Scheduled auctions in the city are a groundbreaking 283 percent higher than this point last year. The mortgage debt and foreclosure issues facing the region are due largely to the land value depreciation of up to 60 percent in some areas of Miami. Fortunately, as the United States continues its nationwide rebound, it seems likely that the devaluation has reached bottom and that a value return is imminent.