2006 Indianapolis Foreclosure Figures: Not the Super Bowl Champ, But Pretty Darn Close!
Indianapolis is not only home to the Super Bowl winning Colts but also one of the highest foreclosure rates in the United States, a less appealing distinction indeed!
Indianapolis foreclosures were 36% higher in 2006 as compared to 2005, according to final RealtyTrac figures cited in an Indianapolis Star story from late January. The story says that lenders took back around 27,500 homes in the Indiana state capital in 2006.
Specifically, Indianapolis foreclosure rates ranked third in the United States in 2006 behind Detroit and Atlanta. 4.3% of the houses across the region were in Indianapolis foreclosure as compared to the 4.9% of homes in Detroit foreclosure and 4.4% of homes in Atlanta foreclosure. Denver and Dallas rounded out the top five for foreclosures in 2006.
Indianapolis' stance as the third highest metro area for foreclosures in 2006 actually marked a slight improvement from earlier last year when it was at the top spot. For example, according to figures compiled by MSN Real Estate, there were 6,383 Indianapolis foreclosures in the third quarter of 2006. This total marked a 2.5% decline from the second quarter.
According to that data, there was one Indianapolis foreclosure per every 100 households in the third quarter of 2006. Third-quarter Indianapolis foreclosures were 3.623 times the national average.
Final RealtyTrac numbers had the 2006 Indiana foreclosure rate at 1.9% as compared to the national average of 1.1 percent. 1.26 million foreclosures were filed in the United States in 2006.
Enough With the Numbers! What are Some Reasons for Indianapolis Foreclosures?
Indianapolis foreclosure rates have been a concern in this city for years, and the Indianapolis Star story provided some interesting reasons for the 2006 totals.
Indianapolis foreclosures were attributed to a weak economy earlier this decade which has now accelerated. The Indy Star details that 902,500 people were employed in the nine-county metro area of Indianapolis in December of last year; a figure which marks the highest December totals in the city ever!
So what are some of the big culprits for Indianapolis foreclosure figures?
Industry experts have contributed Indianapolis foreclosures to various factors, including the disappearance of factory work and lower pay in some jobs. For example, a state report found that the average 2004 salary for the 107,000 factory workers in the region was nearly $85,000. With those types of jobs declining, the average 2006 salary in Indianapolis was around $38,000 for all employees, according to the story.
Other listed reasons for Indianapolis foreclosures include factors seen in other areas throughout the United States, including high medical bills, adjustable-rate mortgages and mortgage fraud schemes!
Adjustable-rate mortgages have been a common problem in not only Indianapolis but also throughout the United States. The increase in subprime loans over the years for less-qualified homeowners has resulted in these homeowners being subject to higher mortgage payments, especially when home sales are declining.
Many mortgage fraud schemes have developed as a result of desperate homeowners unable to meet rising monthly payments and have only created bigger headaches, whether in Indianapolis or somewhere else.
Facing Indianapolis Foreclosure? What You Should Do Next
If you're worried about Indianapolis foreclosure, you are likely not alone as the 2006 figures have already depicted. Speak with a local attorney who can evaluate your financial situation and determine if refinancing, debt workout plans, Chapter 13 bankruptcy or other foreclosure options may help you keep your home.