Indianapolis foreclosures continue to spiral. Moreover, Hoosier State finds a spot in the Top 10 list for foreclosures in July. The State of Indiana continues to be in news for the wrong reasons. Indiana foreclosures have pushed the state among the worst hit in the country for foreclosures. This fact is based on RealtyTrac’s findings.
One in every 609 households filed for foreclosure in Indiana as compared to one filing per 693 for the nation as a while. The inability of people to pay their monthly loan installments for a long time leads to reclaiming of the property by the lender. But besides this, the real estate prices in Indianapolis haven’t soared as with other cities in America. Presently, there are around 1,302 residential properties available for sale through property brokers in counties such as Indianapolis, Vigo, Sullivan, Clay, Vermillion and Parke. Though this number is less than compared to some years ago, it can be safely concluded that the market is rather slow currently.
The increasing number of Indianapolis foreclosures is due to the tsunami like subprime wave that has swept America in its fury. Since subprime mortgages are given to people who has a bad credit history or hardly any credit and only little down payment money, the story only gets murkier. According to RealtyTrac estimates, subprime mortgages consisted of 50% of foreclosure properties from Jan to March 2007.
While Indianapolis recorded the highest foreclosure rate in the first quarter of this year, it also recorded an above-average unemployment rate and below-average residential property price appreciation. Of course, unemployment is the most important reason because of which homeowners stop making their regular payments and lack of proper appreciation in real estate rates further makes the situation difficult forcing homeowners to refinance or sell to avoid foreclosure.
Since everyone wants to fulfill the American Dream of owning a house, more and more homebuyers are ready to stretch themselves thin – financially – in order to buy their dream home. These homebuyers often end up opting for higher risk finance options such as adjustable interest rates, interest only loans etc. And such homebuyers are easy victims to foreclosure and default as the rate of interest rises.
Foreclosure in Indianapolis reached a record high at one for every 69 households. Furthermore, Indianapolis foreclosures stood only second to Atlanta foreclosures and managed to grab a rank on the Top 10 list for cities with highest foreclosure rates in the nation.
One in every 609 households filed for foreclosure in Indiana as compared to one filing per 693 for the nation as a while. The inability of people to pay their monthly loan installments for a long time leads to reclaiming of the property by the lender. But besides this, the real estate prices in Indianapolis haven’t soared as with other cities in America. Presently, there are around 1,302 residential properties available for sale through property brokers in counties such as Indianapolis, Vigo, Sullivan, Clay, Vermillion and Parke. Though this number is less than compared to some years ago, it can be safely concluded that the market is rather slow currently.
The increasing number of Indianapolis foreclosures is due to the tsunami like subprime wave that has swept America in its fury. Since subprime mortgages are given to people who has a bad credit history or hardly any credit and only little down payment money, the story only gets murkier. According to RealtyTrac estimates, subprime mortgages consisted of 50% of foreclosure properties from Jan to March 2007.
While Indianapolis recorded the highest foreclosure rate in the first quarter of this year, it also recorded an above-average unemployment rate and below-average residential property price appreciation. Of course, unemployment is the most important reason because of which homeowners stop making their regular payments and lack of proper appreciation in real estate rates further makes the situation difficult forcing homeowners to refinance or sell to avoid foreclosure.
Since everyone wants to fulfill the American Dream of owning a house, more and more homebuyers are ready to stretch themselves thin – financially – in order to buy their dream home. These homebuyers often end up opting for higher risk finance options such as adjustable interest rates, interest only loans etc. And such homebuyers are easy victims to foreclosure and default as the rate of interest rises.
Foreclosure in Indianapolis reached a record high at one for every 69 households. Furthermore, Indianapolis foreclosures stood only second to Atlanta foreclosures and managed to grab a rank on the Top 10 list for cities with highest foreclosure rates in the nation.
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