According to a report by the Federal Reserve Bank of Richmond in Virginia, areas that were hit hard by foreclosures include communities that encountered high price increases. For Virginia, counties in the northern part of the state experienced sharp price jumps, resulting to more cases of foreclosed homes. In general, areas that were most affected by the crisis have more mortgages with subprime loans. This accounts for the majority of the more than 2.2 million American homes that fell into foreclosure for the year 2008.
In Virginia, data analysis performed by the Richmond Times-Dispatch for the year 2008 resulted in figures indicating 27,938 foreclosure properties for the whole state. This figure includes family units, business establishments, apartments, condominiums and vacant lots.
This figure is more than double the amount in 2007 for a total increase of 161 percent. Compared to other states, Virginia is in a better situation in terms on mortgage delinquencies and even foreclosure rates. However, areas in Northern Virginia reflected some of the highest figures in the country.
In the Richmond area, the number of foreclosures reached 2,248 during the first eleven months last year which is equivalent to a staggering 287 percent increase from 2007. All kinds of properties were susceptible to the crisis, whether it was an already boarded-up house worth $26,900 or a relatively new mansion worth $1.9 million that is located in a plush neighborhood in the state.
Both have reverted back to bank ownership after these houses were repossessed by lenders. Some foreclosures were located in new subdivisions and neighborhoods, while others were in old established areas with very big homes.
Contrary to misconceptions, realty experts say repossessed homes are not concentrated in the low-income bracket. Even modestly high-priced homes were affected; particularly those included in price balloons a couple of years ago. Many homes are still at risk and experts are saying that this will most likely to continue until 2010.
Leticia Carvalho has been educated in the finer points of the foreclosures market over 5 years. Read about the following article Foreclosures Wave Roll Across Virginia by Leticia Carvalho.
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