2007 Atlanta Foreclosure Rates Picking Up Where Last Year Left Off!
While Atlanta has been called "Hotlanta" for its scorching temperatures in the summer, this nickname can unfortunately apply to the foreclosure rate in the state capital of Georgia.
2006 Atlanta foreclosures were second in the nation behind Detroit, according to RealtyTrac year-end statistics for the largest metro areas in the United States. There were approximately 63,737 Atlanta foreclosures last year. For even more context, Atlanta foreclosures were 4.4 times the national average.
When broken down, there was one Atlanta foreclosure per every 23 households last year, and the New Year hasn't offered much relief. According to RealtyTrac statistics for the end of January, Atlanta had the third highest metro foreclosure rate in the nation for that month!
Specifically, this 28-county metro area had one new Atlanta foreclosure for every 214 households. January saw nearly 6,800 new Atlanta foreclosure filings, which marks a 25% increase from December.
Atlanta foreclosure levels are representative of a larger problem throughout the state. Despite not ranking in the top three states for foreclosures during all four quarters in 2006, Georgia ranked number two behind Colorado for foreclosures when last year was all said and done.
Final RealtyTrac numbers reported that there were 75,975 Georgia foreclosure filings last year. 2006 Georgia foreclosure totals marked a 67% year-over-year increase.
As for the first month of the New Year, Georgia foreclosures were the third-highest among the 50 states for the fourth month in a row. January saw one new Georgia foreclosure filing per every 372 households.
There were more than 8,300 new Georgia foreclosure filings in January, which marked a 29% increase from December and a 13% increase from January 2006.
Why Are Atlanta Foreclosure Totals So High? Examining Some Reasons!
While Atlanta's "Hotlanta" nickname can be applied to its temperatures and foreclosure totals, it is also suitable for the number of mortgage fraud cases in the city.
Atlanta was the number one mortgage fraud market for many years in the United States, according to a member of the Atlanta Board of Realtors in a recent USA Today story. Mike Wright was quoted in the story as saying that while lenders and realtors have gotten some hold of this problem, many Atlanta foreclosures are still being felt from mortgage fraud schemes.
According to a recent story in The Providence Journal detailing mortgage fraud throughout the United States, this problem became so prevalent in Atlanta a few years ago that appraisers could not even accurately estimate what homes were worth. The USA Today story includes a 2005 Mortgage Asset Research Institute study which ranked Atlanta number three for mortgage fraud hot spots in the nation.
With this problem in mind, Georgia later became the first state to pass a law criminalizing mortgage fraud and making scam artists susceptible to racketeering charges. Just last week, a federal jury found a former closing attorney guilty of charges stemming from a $20 million Atlanta mortgage fraud scheme. According to just some of the charges listed in an Atlanta Business Chronicle story, Chalana C. McFarland closed mortgage loans with the names of stolen borrower identities.
In addition to cases of Atlanta mortgage fraud, the city's high foreclosure rates can be contributed to other problems seen in other areas throughout the country, including a slumping real-estate industry and oversaturated housing market. According to the USA Today story, Atlanta has more than an 11 month supply of homes and condos for sale, which is a major reason why homes are taking longer to sell and asking prices are going down. Many of these oversaturated homes are coming from foreclosures, according to Wright.
While selling property may be an option to avoid foreclosure, it may be actually very difficult to do so when the supply of homes is greater than the demand, as the current situation in Atlanta depicts.
Facing Atlanta Foreclosure? What You Should Do Next!
If you're worried about Atlanta foreclosure, you may not be alone and should speak with a local attorney as soon as possible. An experienced attorney in your area can evaluate your financial situation and help you determine if refinancing, debt workout plans, Chapter 13 bankruptcy or other foreclosure options may help you keep your home.