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Foreclosed Homes Spreading to Ohio Suburbs

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By : John Cutts    99 or more times read
As the recession spreads across the United States, it brings on its wake thousands of distressed homeowners and foreclosed homes. Urban areas in Ohio were the first to suffer the blight that is foreclosure properties. Now, the epidemic has spread to suburban areas as recession and unemployment remain unabated.

More than 50 percent of houses sold at sheriff's foreclosure auctions in Montgomery County in 2008 and the first six months of 2009 were properties outside the city of Dayton. During the period, out of the total 3,800 properties sold at auctions, 58 percent or 2,200 were located in Dayton's suburban areas.

The areas that covers Washington Township and southern Centerville were the hot spot of foreclosure sales in Montgomery County. In the exurb area, the number of foreclosure houses auctioned off between 2006 and 2008 grew thrice from 12 properties to 43.

Industry analysts said that southern suburban area is where expensive properties are located, therefore, neighborhoods surrounding the exurb area saw their equities dropped drastically in foreclosure auctions.

Some Washington Township foreclosure homes sold at auctions have lost their values drastically that a three-bedroom house originally priced at $301,000 four years ago are now sold at $184,000.

And a growing number of suburban homeowners who are struggling to pay their monthly mortgages are walking away from their properties that have negative equity and leaving them for lenders to foreclose rather than spend more money keeping their accounts current.

Industry analysts said that the demographic profile of homeowners going into foreclosure has changed this year. In 2008, many foreclosures involved homeowners who took out adjustable-rate mortgages or subprime loans and those who bought properties that they could not afford.

This year, mitigating circumstances such as job loss, divorce or illness have forced even creditworthy and prime loan borrowers to default on their mortgage payments.

Results of a market study showed that the number of jobless people in suburban areas grew at almost the same rate as in urban areas. The study also noted that the number of residents from suburban areas asking for food assistance increased at a faster rate compared than those living in the city.

In the metropolitan statistical area of Dayton, unemployment in the suburbs jumped by 4.4 percent from May of last year to the same month this year. Overall unemployment in the suburbs reached 10.9 percent while Dayton saw it climbed by 12.6 percent.

Industry analysts agree that unemployment, recession and adjustable rate mortgages are causing the foreclosure problem being faced by homeowners whether they are living in the suburbs or the city.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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