Released: November 14, 2007

California, Florida lead metros in home foreclosures

Source: Alex Veiga, (AP) - USA TODAY

More homeowners across the USA are having trouble making mortgage payments on time, but borrowers in metro areas of California, Florida and other once-booming housing markets are accounting for the biggest spikes in foreclosure filings, according to a mortgage research company.

An analysis of foreclosure activity in the nation’s 100 largest metropolitan areas during the three months ended Sept. 30 shows seven cities in California and five each in Florida and Ohio were among the top 25 metro areas with the highest foreclosure rates, according to a study released Wednesday by RealtyTrac.

The company calculates its foreclosure rates by comparing the number of households in a metro area with the number of foreclosure filings, which include notices of default, auction sale notices or bank repossessions.

Stockton, Calif., about 83 miles east of San Francisco, had the highest foreclosure rate in the third quarter among the top 100 metro areas, with one foreclosure filing for every 31 households, RealtyTrac says.

Detroit was second, with one foreclosure filing for every 33 households. The Riverside-San Bernardino metro area, about 60 miles east of Los Angeles, was third, with one filing for every 43 households.

Riverside-San Bernardino also accounted for the most foreclosure filings in the U.S. during the quarter, RealtyTrac said.

The housing market slump has made it harder for financially strapped home buyers to sell their homes and avoid missing payments or losing their homes in foreclosure. Increasingly, many borrowers who took out adjustable-rate mortgages and other loans that adjust to higher monthly payments after an initial period are also finding they can’t afford their payments.

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