American Nightmare: Top 10 Cities for Foreclosures

Top 10 Cities for Foreclosures - ABC News

No One Is Sure Whether The Worst Is Over, But These Cities Are Under Siege

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By LYNEKA LITTLE

Sept. 23, 2010

If you drive 32 miles east of Reno, you ll find Fernley, Nevada. The city that limits its dog count to three per address and speaks out about the affects of graffiti on its Website has troublesome news to digest. It has the nation s highest foreclosure rate through August.

It's been an awful time for the real estate market, which was only made worse by recent news. August was the toughest month for homeowners as lenders swooped in and seized more than 95,000 homes across the United States, according to Realty Trac.

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Is the worst over yet? The foreclosure rate is up 25 percent since August 2009, and the dream of homeownership has turned sour for many who owe more on their homes than they are worth or can't pay their mortgage

"I don't think we've seen the worst of it yet," says Lisa Johnson-Sevajian, vice president at Coldwell Banker Andover, about what she calls the "American drama." But, "there is a lot of opportunity for first-time homebuyers to get in and create an investment for themselves," she added.

Efforts by the government to stem the tide of foreclosures have had mixed success. The Obama administration's main anti-foreclosure program touched a 10-month low in August with 33,000 homeowners receiving assistance. The president said in 2009 that as many as 4 million homeowners would be helped, and about 449,000 have thus far received assistance to avoid foreclosure.

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Mortgage rate freeze reached

Today President Bush announced a big program for the relief of the Mortgage crunches for the homeowners. Here is the newsbrief:

Mortgage rate freeze reached

By MARTIN CRUTSINGER, AP Economics Writer
11 minutes ago


WASHINGTON - Hundreds of thousands of strapped homeowners could get some relief from a plan negotiated by the Bush administration to freeze interest rates on subprime mortgages that are scheduled to rise in the coming months

There is no perfect solution," President Bush said Thursday as he announced an agreement hammered out with the mortgage industry. "The homeowners deserve our help. The steps I've outlined today are a sensible response to a serious challenge."

Seeking to counter criticism he is violating his free-market principles, Bush said the private-sector plan does not represent the imposition of a government solution to the mortgage crisis.

"We should not bail out lenders, real estate speculators or those who made the reckless decision to buy a home they knew they could not afford," Bush said after meeting with industry leaders at the White House. "But there are some responsible homeowners who could avoid foreclosure with some assistance."

Bush said 1.2 million people could be eligible for help. But only a fraction will be subject to the rate freeze. Others would get assistance in refinancing with their lenders and moving into loans secured by the Federal Housing Administration, Bush said.

Also, the aid will only come to those who ask for it, he said. Thousands of borrowers who are falling behind on their payments have been sent letters about the options, and Bush also urged people to call a new hot line: 1-888-995-HOPE.

The announcement followed news earlier Thursday that home foreclosures surged to an all-time high in the July-September period. The Mortgage Bankers Association reported that the percentage of all mortgages that started the foreclosure process in the third quarter jumped to a record 0.78 percent. That top the mark of 0.65 percent of all mortgages in the second quarter.

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