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REO Foreclosures Rise in Utah for 3Q

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By : John Cutts    99 or more times read
The number of households that received foreclosure filings and the total number of REO foreclosures increased in Utah during the July-September 2010 period, resulting in the state getting ranked sixth overall in terms of foreclosure activities for the third quarter.

Ogden home foreclosures and all types of distressed properties in almost all areas of the state rose during the period, with one household out of every 88 receiving a filing for the third quarter. The state recorded a total of 3,700 properties lost to foreclosure for the July-September period.

According to housing market analysts, the significant jump in Utah foreclosed homes total can be attributed to the record number of bank repossessions posted all around the U.S. during the quarter. The state's real estate market also experienced the crisis almost two years after every state in the U.S. is already mired in it, which means that Utah is just starting to experience the worst of the problem.

The house foreclosure problem is expected to start easing in the state by early 2011, when the local residential market will start bottoming out. While other states' housing markets have already started bottoming out during the early or middle part of 2011, Utah will just be starting to reach the lowest level by next year.

Other factors cited by housing market analysts behind the rise in the number of REO foreclosures and distressed properties in the state are high unemployment rates and declining prices of houses. According to them, when values of dwellings decline, a big number of homeowners ended up owing more on their loans than what their properties are worth.

Local housing data revealed that around 25% of Salt Lake homeowners are underwater or paying mortgages at a higher price than their houses' worth. The rest of Utah is also suffering from similar problems, although it is anticipated by most market observers that the foreclosure rate will decline in the fourth quarter of 2010 as the nationwide moratorium impacts housing markets all around the U.S.

Based on total number of foreclosure filings and REO foreclosures for the 2010 third quarter, there are only five states that have worse housing market conditions than Utah and these are Nevada, Arizona, Florida, California and Idaho.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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