Worst cities for foreclosure named

[GeauxTo]

CNNMoney is out with a list of the 500 ZIP codes where the most U.S. foreclosures have come from during the current housing bust. Nearly 28% have come from California, according to the survey by RealtyTrac, and Florida was a distant second. There were 72 foreclosures in Florida during a three-month period that ended in the middle of this month. The hardest hit zip code was 44105, in a poor section of Cleveland, where there were 783 foreclosure filings. The list was dominated by rustbelt cities hurting from manufacturing downturns and sunbelt cities where home prices skyrocketed over the past few years. Check out the complete list here. (http://money.cnn.com/2007/06/19/real_estate/500_top_foreclosure_zip_codes/index.htm)

[Gator2753]

Alot of Atlanta and Metro Atlanta zip codes listed:sad:

[Stark]

So when there's a lot of foreclosures, does that mean prices will start going down?

[azamugg]

Im in the mortgage/real estate industries .....and the mortgage industry is getting a bad rap from this propaganda....first off the foreclosures have doubled! as the paper says....sure, but only in subprime mortgages (worst at risk borrowers, bad credit, etc) and they've gone from 2% of those type mortgages to 4% .....doesnt sound so bad when you take the numbers and present them in a different way.................those foreclosures are taking place, too, because of two different reasons, crooked mortgage brokers talking naive borrowers into involving themselves in loan products that arent adviseable, ARMs w/teaser rates that adjust severely from year one to year two, then have severe prepayment penalties that make refinancing unadviseable, so if the borrower sells to get out of the mortgage the prepayment penalty added to the mtg balance causes them to be "upside down"...........the second reason is social irresponsibility, people using ARMS to get the low introductory rate to allow them to buy a house which they have no business purchasing, allowing them to live beyond their means, to go waaaay past the Jones's

[USAFGAMECOCK]

Im in the mortgage/real estate industries .....and the mortgage industry is getting a bad rap from this propaganda....first off the foreclosures have doubled! as the paper says....sure, but only in subprime mortgages (worst at risk borrowers, bad credit, etc) and they've gone from 2% of those type mortgages to 4% .....doesnt sound so bad when you take the numbers and present them in a different way.................those foreclosures are taking place, too, because of two different reasons, crooked mortgage brokers talking naive borrowers into involving themselves in loan products that arent adviseable, ARMs w/teaser rates that adjust severely from year one to year two, then have severe prepayment penalties that make refinancing unadviseable, so if the borrower sells to get out of the mortgage the prepayment penalty added to the mtg balance causes them to be "upside down"...........the second reason is social irresponsibility, people using ARMS to get the low introductory rate to allow them to buy a house which they have no business purchasing, allowing them to live beyond their means, to go waaaay past the Jones's

There ya go....I agree 100%. My wife and I are in the process of purchasing a home in Atlanta right now. You're right about the mortgage lenders trying to pull people in....when we got our pre-approval for our home, they approved us for about twice the amount of what we are borrowing. And they were telling us that we could afford more. BUT, luckily we have enough sense to know not to live above our means. Sadly, many people bite the bait with these temptations, and there are several really risky loans out there!

[GatorHunter]

A lot of the reasoning for this...especially in Florida, these "prospectus" buyer came into NW Florida and bought a bunch of land...land that "wasn't" for sale, so they payed "premium" prices....they broke the land up and tried to sell it for an ave. of $10,000 an acre...3 years ago..it was around $4000 an acre...anyway, these guys thought that just because land prices were outta control in central Florida that they could get rich quick up here...didn't work...none of the locals can afford the land...now, prices are dropping, the housing market is in the tank because people aren't building and many of these buyers are goin' "tits up"...