Defaults by state - top 10
Foreclosure Rates
Foreclosure filings, defined as a default notice, bank repossession or auction sale notice, were down 3.27 percent in May from the previous month and showed a 0.45-percent increase from the year before, according to RealtyTrac 's U.S. Foreclosure Market Report. In May, one in every 400 households in the country had received a foreclosure filing.
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1. Nevada
Rate: One in every 79 households
2. Arizona
Rate: One in every 169 households
3. Florida
Rate: One in every 174 households
4. California
Rate: One in every 186 households
5. Michigan
Rate: One in every 223 households
6. Georgia
Rate: 1 in every 292 households
7. Idaho
Rate: One in every 309 households
8. Illinois
Rate: One in every 350 households
9. Utah
Rate: One in every 360 households
10. Maryland
Rate: One in every 399 households
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Well now you know what I started to think then ... is that more evidence that defaulting borrowers are juicing consumer spending with their excess cash?? (see blog April 12) Steve tried to do a lot of very confusing math on it, but then he looped in Mark Zandi, of Moody's Economy.com, who had the following reaction:
"I don't think the fed's mortgage debt data sheds much light on the issue. What matters for consumer spending growth is the cash being freed up by so many households not making a mortgage or rental payment. That mortgage debt is declining is suggestive that there are lots of these households, but it doesn't suggest much more than that."
Okay, so here's what I learned today: Despite a slight drop, really a flattening, in new foreclosures, the pipeline is still so full that bank repossessions and freeloading borrowers are going to mess with the fundamentals of our economy for a good long time to come.
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