Report: Home foreclosures up 75 per cent in 2007

Jan 29, 2008, 20:10 GMT

New York - The number of home foreclosures in the United States surged 75 per cent in 2007 amid the melt down in the subprime mortgage market, a report by a firm that tracks foreclosures said Tuesday.

There were 2.2 million foreclosure filings in 2007, amounting to nearly 1 per cent of all US households, Realty Trac said in its foreclosure market report. The amount surged from 0.6 per cent of US households in 2006.

The western state of Nevada was hardest hit, with 3.4 per cent of households in foreclosure. Florida and Michigan saw about 2 per cent of households in foreclosure. California, Colorado, Ohio, Georgia, Arizona, Illinois and Indiana were among the 10 hardest hit states.

California had the highest number of foreclosures - 481,392 foreclosure filings on 249,513 properties - triple the number in 2006.

Analysts have said the number of foreclosures could continue to rise as more borrowers face adjustment in their mortgages that will lead to higher monthly payments.

Last month, US President George W Bush unveiled a plan to help up to 1.2 million struggling homeowners pay their loans that includes an offer to some homeowners to freeze the interest rate on their adjustable-rate loans for five years. An economic stimulus package agreed to by Bush and Congressional leaders last week also includes mortgage lending reforms.