Alabama Foreclosures Continue to Rise

AL Foreclosure News & Information

Article Abstract: Article Abstract:  According to a recent report, Alabama foreclosures rates have quadrupled since the same period last year. Birmingham foreclosure rates are some of the highest in the nation, ranking 64 out of 100 metropolitan areas. For the full AL foreclosure news article, please read below:

Reports across the board show the rate of Alabama foreclosures are still on the rise. Sources say foreclosures have risen up to 466 percent since last year to-date.

According to one report, Birmingham alone ranked 64 of 100 metropolitan areas exhibiting the most foreclosures nationally. With 878 properties in foreclosure in the third quarter the area is one of the hardest hit.

On the upside Foreclosure.com, a Boca-Raton based company, estimated a much less inflated number. Foreclosure.com estimated that foreclosures in Alabama only slightly increased compared to last quarter.

The reason for the deviation lies in the way companies count foreclosures. Some sources base their figures on all stages of foreclosures, while Foreclosure.com only factors in those homes at the actual foreclosure level, meaning when the bank has taken over the property. Other reports include homes in all states of foreclosure including what is deemed a pre-foreclosure. Pre-foreclosures are at times resolved before the time of the auction.

Most sources agree that the reason behind manly of these filings began with the amortization loans. Those interest only loans have left many homebuyers in a financial bind. Adjustable rate mortgages that have reflected recent rate increases have also played a part in the rise of foreclosures.

It’s not over yet either. Forecasters estimate that over $1 trillion in ARMs will “reset” with increased rates this New Year. This prediction combined with a slowing market will undoubtedly lead to even more foreclosures to come.

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