Newly released datacompiled by ForeclosuresWI.com, a leading provider of Wisconsin foreclosure resources and statistics, show that Wisconsin foreclosures remain at escalated levels.
After rising 34% in 2006, Wisconsin as a whole had 9,229 foreclosure filings in the first half of 2007, which on average, equates to nearly 73 foreclosures filed every business day.
Wisconsin foreclosure filings in the first half of 2007 were up nearly 23 percent compared to the first half of 2006, and filings for the month of June 2007 filings were up more than 8 percent from May.
More than double the statewide average increase, Milwaukee County foreclosure filings are nearly 48 percent higher compared to the first half of 2006.
While 77 percent of Wisconsin counties had more foreclosure filings in the firsthalf of 2007 than 2006, 4 percent had the same amount of filings, and 18 percent had fewer filings.
Robert Jansen, President of ForeclosuresWI.com, said several contributing factors driving the increased foreclosure filings. He said a mix of rising interest rates and a softening housing market, along with the underlying dynamics of the subprime mortgage market, have forced many homeowners into foreclosure.
Increased interest rates, compounded by adjustable-rate and exotic mortgages, have caused “staggering increases” to many homeowners’ monthly mortgage payments, he said.
Furthermore, the cooling of the housing market and overall increase in the number of homes on the market has made it more difficult for those facing financial trouble to quickly sell their home toavoid foreclosure.
In addition, the slowdown in appreciation has also taken away many homeowners’ safety nets. In the past, many homeowners have used equity gained from appreciation to pay down overwhelming revolving and installment payments in an attempt to make their monthly payments affordable again.
Furthermore, the subprime lenders that originally provided home loans to many people with less than perfect credit are now tightening their lending standards in the wake of the skyrocketing mortgage defaults nationwide. This eliminates many refinancing options for those in trouble.
For more information and foreclosure resources, visit the ForeclosureWI.comlearning center at www.foreclosureswi.com.