Will’s Blog for First Time Buyers

Application Process

This describes a typical step-by-step application/mortgage origination process for a 203 (k)transaction involving the purchase and rehabilitation of a property.My role as a lender, the contractor, the borrower, consultant, the plan reviewer, appraiser and the inspector.

A. Lender Prepares Firm Commitment Application. The borrower provides information for the lender to request a credit report, verifications of employment and deposits, and any other source documents needed to establish the ability of the borrower to repay the mortgage.

B. Lender Issues Firm Commitment. If the application is found acceptable, the firm commitment is issued to the borrower. It states the maximum mortgage amount that HUD will insure for the borrower and the property.

C. Homebuyer Locates the Property.

D. Preliminary Feasibility Analysis. After the property is located, the homebuyer and their real estate professional should make a marketability analysis prior to signing the sales contract. The following should be determined:

1.  
   1) The extent of the rehabilitation work required;

   2) Rough cost estimate of the work; and

   3) The expected market value of the property after completion of the work. Note: The borrower does not want to spend money for appraisals and repair specifications (plans), then discover that the value of the property will be less than the purchase price (or existing indebtedness), plus the cost of improvements.

E. Sales Contract is Executed. A provision should be included in the sales contract that the buyer has applied for Section 203(k) financing.

F. Homebuyer Prepares Work Write-up and Cost Estimate. A consultant can help the buyer prepare the exhibits to speed up the loan process. If a plan reviewer is the consultant, item G can be skipped and the exhibits can go directly to the appraisal stage.

G. Lender Requests HUD Case Number. Upon acceptance of the architectural exhibits, I, the lender requests the assignment of a HUD case number, the plan reviewer, appraiser, and the inspector.

H. Plan Reviewer Visits Property. The homebuyer and contractor (where applicable) meet with the plan reviewer to ensure that the architectural exhibits are acceptable and that all program requirements have been properly shown on the exhibits.

I. Appraiser Performs the Appraisal.

J. Lender Reviews the Application The appraisal is reviewed to determine the maximum insurable mortgage amount for the property

K. Issuance of Conditional Commitment/Statement of Appraised Value. This is issued by the lender and establishes the maximum insurable mortgage amount for the property.

L. Lender Issues Firm Commitment. If the application is found acceptable, the firm commitment is issued to the borrower. It states the maximum mortgage amount that HUD will insure for the borrower and the property.

M. Mortgage Loan Closing. After issuance of the firm commitment, the lender prepares for the closing of the mortgage. This includes the preparation of the Rehabilitation Loan Agreement. The Agreement is executed by the borrower and the lender in order to establish the conditions under which the lender will release funds from the Rehabilitation Escrow Account. Following closing, the borrower is required to begin making mortgage payments on the entire principal amount for the mortgage, including the amount in the Rehabilitation Escrow Account that has not yet been disbursed.

N. Mortgage Insurance Endorsement. Following loan closing, the lender submits copies of the mortgage documents to the HUD office for mortgage insurance endorsement. HUD reviews the submission and, if found acceptable, issues a Mortgage Insurance Certificate to the lender.

O. Rehabilitation Construction Begins. At loan closing, the mortgage proceeds will be disbursed to pay off the seller of the existing property and the Rehabilitation Escrow Account will be established. Construction may begin. The homeowner has up to six (6) months to complete the work depending on the extent of work to be completed. (Lenders may require less than six months.)

P. Releases from Rehabilitation Escrow Account. As construction progresses, funds are released after the work is inspected by a HUD-approved inspector. A maximum of four draw inspections plus a final inspection are allowed. The inspector reviews the Draw Request (form HUD-9746-A) that is prepared by the borrower and contractor. If the cost of rehabilitation exceeds $10,000, additional draw inspections are authorized provided the lender and borrower agree in writing and the number of draw inspections is shown on form HUD-92700, 203(k) Maximum Mortgage Worksheet.

Q. Completion of Work/Final Inspection. When all work is complete according to the approved architectural exhibits and change orders, the borrower provides a letter indicating that all work is satisfactorily complete and ready for final inspection. If the HUD-approved inspector agrees, the final draw may be released, minus the required 10 percent holdback. If there is unused contingency funds or mortgage payment reserves in the Account, the lender must apply the funds to prepay the mortgage principal.

Renovation: FHA 203(k) Renovation Loan:

• FHA down payment (3%)
• Flexible credit qualifying
• Finance up to 6 months of mortgage payments
• Purchase or Refinance and Improve all in one loan

The 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair, either the home that they currently live in, or  a fixer-upper. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.

. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to OCCUPY the house, and the home is 1 to 4 units.

• 203K Eligible Borrowers:
  • Owner Occupants - Purchase - Refinance

  Eligible Properties:

  • Single family dwellings
  • Condominium
  • Townhouse
  • Mixed Use (Storefront)
  • 1-4 Unit buildings- This loan can be used to increase or decrease the number of units.(  For example if you have a 2 family building that you want to convert to a large one family, the costs involved can be part of the loan. )
• Structural Alteration and Reconstruction:
  • Elimination of health/safety hazards
  • Changes for cosmetic appeal
  • Plumbing, heating air conditioning, and electrical upgrades
  • Well and/or septic repairs
  • Roofing, gutters and downspouts
  • Flooring, tiling and carpeting
  • Energy conservation improvements

   

Access for the disabled

• Appraisal:  The loan to value (also known as LTV ) is based on estimated value after agreed upon repairs are completed.)
  The appraiser will be given a copy of your “work-write up” to estimate an after improved value for your new home or current home. The loan given is  against that improved value  giving you credit for the work to be performed.Other Eligible Costs:
  (THESE COSTS MAY BE FINANCED INTO THE MORTGAGE LOAN)
  • Contingency reserve (10%-20%) ( What is a contingency reserve-Most mortgages for purchase-renovation require an additional 10 percent of the total cost of the project to be put aside into a reserve account. This contingency reserve is only used when unforeseen repairs or costs are found during renovation.)
  • Up to 6 months PITI (Principal ,Interest ,Taxes and Insurance)mortgage payments
  • Permit costs
  • Consultant fees
  • Inspection and title update fees
  • Architectural & Engineering fees (if needed)
• What Steps Do  you need to take to  Buy a House Using FHA 203(k) Renovation Loan.

•  
  •   As with any Prospective Purchase Your First Step should be to speak to a Mortgage Professional
  • Locate the home you want and submit a contract for purchase - contingent on a home inspection.
  • After your contract is signed, schedule a home inspection with a 203(k) cost consultant to budget your renovation.
  • If you approve the budget, the 203(k) cost consultant will prepare the work write up for the appraiser and lender, and will prepare three contractor bid packages for you.
  • You can now bid your job to general contractors, or multiple sub-contractors.
  • Appraiser uses work write-up to value home as if all work is completed.
  • Loan closing (30 to 45 days average).
  • Within 30 days of closing start project with general contractor, or multiple sub-contractors.

Please feel to contact me if you have any question or are looking to Purchase a Rehab. Home.

With the recent mortgage debacle and the subsequent tightening of available credit - it’s no wonder that more and more lenders, hospitals, and landlords are turning their focus to collections in an effort to recoup some of their losses.

In the past twelve months I’ve seen a drastic spike in consumer complaints about collection agencies and their strong-arm tactics. Unfortunately, with the current economic downswing and the constant murmurs of a recession looming ahead, it’s only going to get worse. You need to know how to help your clients avoid collections before they happen - and how to deal with them if they do.

Collections will have a serious negative impact on your client’s credit reports and credit scores. They are never good and should be avoided at all costs because they are next to impossible to get removed.

But before we delve into how to handle collections, let’s clarify what a collection is and how the system works. A collection is an action taken by a lender (or service provider) in an attempt to collect an unpaid or delinquent debt. Some lenders will use their own internal collection departments while others will outsource debts to a 3rd party collection agency.

Either way, the collector’s primary task is to convince debtors to pay up.

Collection agencies work with lenders and service providers in two different ways. The first way is for the agency to buy the bad debt so that they own it outright. In all cases collection agencies purchase these debts for much less than the amount owed - usually pennies on the dollar. Another option is for the lender to consign the account to the collection agency. With this option, the lender agrees to pay the agency a percentage of whatever amount their collectors are able to recover. This percentage can vary, of course, but I’ve seen as high as 50% in some cases.

Once the collection agency takes over the account, they give financial incentives to their agents by rewarding them with bonuses if they are able to collect most - or all - of the outstanding debt. The more the agent is able to collect, the more money they get to put in their own pockets. Unfortunately, this can lead to some pretty ruthless and unethical collection practices.

Avoiding collections before they happen:

The easiest way to avoid a collection is for your clients to pay their bills - and pay them on time. Sometimes this may mean laying aside their pride and paying a bill that they don’t necessarily agree with just to avoid it going into collections.

If they don’t agree with a charge or feel that they’ve been treated unfairly by a provider - utility company, cell phone company, doctor, dentist, etc. - withholding payment isn’t a wise option.  Eventually the service provider will turn the account over to a collector and when they report it in your client’s credit report; it will negatively impact their credit for up to seven years.

I can’t tell you how many times I’ve heard from disgruntled clients that refused to pay a bill ‘on principle’ and then ended up with a $72 collection on their credit reports. It’s just not worth the damage it causes. In the long run it’s just better for them if they bite the bullet and pay the bill.

When a collection is unavoidable:

We all know that life can throw your clients a curve ball when they least expect it - a job loss, death in the family, unforeseen illness, etc. In these cases, it may be impossible to avoid a collection. If they already have a collection, here are some very important things you should know about:

1. Fair Debt Collection Practices Act. Know their rights as outlined in the Fair Debt Collection Practices Act. If they have a collection and have been contacted by a collection agency, they only have 30 days to dispute the debt or to request the collector to validate the debt. They also have rights that protect them from harassing and unethical collectors. To read a summary of their rights, go to http://www.ftc.gov/os/statutes/fdcpajump.shtm.

2. Statute of Limitations. A lot of consumers confuse the credit reporting statute of limitations with the statute of limitations to collect a debt. In many cases the statue of limitations to sue for contract debt can be much longer than the debt can legally be reported to the credit bureaus. The debts are certainly still collectable, just not reportable. If they have a collection that is close to being removed because of the statute of limitations - 7 years - and they are able to pay it or settle it, have them do so. Collectors are suing to collect their funds more than ever and as I mentioned earlier, it’s only going to get worse.

3. Don’t ignore the collection! Recently I heard a very well known and highly respected consumer advocate celebrity advising people to ignore collectors if they don’t have the money to pay. This is probably the worst advice to follow when dealing with collections. Communication is vital. Avoiding collections does not make the collection or the bill collectors go away. In fact, the collection agency will most likely end up suing you if you owe them over $1,500, and possibly garnishing their wages or filing suit against them. Ignoring them won’t stop the process; it will only make it much worse and more expensive in the long run.

4. Paying “In Full” vs. Settling. I always advise clients to pay a collection, or at the very least to try settling with the collector. Remember, the collection agencies pay pennies on the dollar for these accounts. Your clients should try to negotiate and settle the debt for as little as possible. They can start by suggesting 20% of what they are asking and go up from there. Keep in mind that your clients are dealing with professional collectors. They’re going to push for them to pay it all up front rather than a payment plan because they want to get their commission sooner rather than later.  Don’t let them push your clients into something they can’t do - structure a deal that works for your clients, not for them. When they do come to an agreement, get it in writing before they make the payment. But always remember…they are not lenders. They don’t have to set your clients up with a payment plan. Their attitude is “hey, you already had your chance to make payments to the creditor and you screwed that up. So why should I trust you?”

5. Pay for removal. Some shady collectors will tell your clients whatever they want to hear if they think it will help them get them to pay the debt. If they offer to remove the collection from your client’s credit reports in exchange for payment, they shouldn’t believe it unless they get it in writing first.

The credit bureaus have strict policies regarding collections. The only way a collection will be removed is if it is an error or if the statute of limitations for reporting has expired. Think about it this way, if the credit bureaus removed a collection just because it was paid, how accurate would their reporting system be? Did the collection exist? Absolutely! If they were to remove the collection it would dilute the value of their credit reports. This is why the credit bureaus will not honor those pay for removal deals. Don’t let your clients fall for it unless they have it in writing to back it up if the collector tries to renege on the deal.

To Summarize:

Your client’s best option is to avoid collections all together. However, if a collection is unavoidable, the next best thing is to minimize the damage by having them pay it or settle it as quickly as possible. Be sure to tell your clients to get everything in writing, including a receipt, and make sure that the collection agency updates the account as “paid” in their credit reports.

Visit us at  www.mycreditremedy.com

  FHA EXTENDS FINANCING FOR IMMEDIATE PURCHASE OF FORECLOSED HOMES
Measure seen to bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration today announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties.

For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.

“A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community’s recovery,” said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. “The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country.”

FHA’s new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It’s reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property “flipping,” a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA’s new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing.

To read the full text of this new temporary policy, visit FHA’s website.

  I don’t think it will apply to investors but it could be great news for us buying HUD houses - It will probably be thirty or more days before we know if it just applies only to Forecloses Homes and not to quick turns.  The way I read it it would not apply to us trying to quick turn properties.  I will try to get additional information from my contacts at PEMCO and HUD.  Have a great Father’s day weekend.  I will be back in town late Monday but as always - I have my cell phone.
 
Will

Beware - See anyone you know?

Georgia continues to be one of the top states for personal bankruptcy, as new reports indicate that the state ranked 2nd in the nation with just shy of 13,000 bankruptcies registered during the first quarter. The only state with more bankruptcies was Tennessee.

Declaring bankruptcy is sometimes the only way for consumers and citizens to seek legal protection from creditors seeking to collect money that citizens simply don’t have, and in Georgia, roughly 1 out of 60 homeowners has sought this protection.

However, this is nothing new. Georgia has historically had one of the higher bankruptcy rates in the nation, and has rarely fallen out of the top 5 states in this category. Experts say that this is because the state attracts a lot of young entrepreneurs who attempt to go into business for themselves, and of course, some fail. This, combined with the state’s laws that make it easy for creditors to go after their debts contributes annually to one of the higher rates of bankruptcy out there.

The recent trend in foreclosures has also had a huge impact on personal bankruptcies, and Georgia is currently 8th among states in terms of foreclosure rate. Laws in Georgia also make it easy for lenders to pursue a foreclosure on indebted homeowners relatively quickly, as most homes in foreclosure end up being sold off within 40 days.

These are all signs of how deeply the housing market recession is affecting the economy, and the personal lives of so many borrowers and homeowners. Since they cannot gain anything by selling off their properties on the open market, many homeowners in Georgia seek pre-foreclosure sales to investors to rid themselves of the foreclosure, and instances of pre-foreclosure sales have been growing in the area.

U.S. FORECLOSURE ACTIVITY INCREASES 23 PERCENT IN FIRST QUARTER
By RealtyTrac Staff   

Foreclosure Activity Up 112 Percent From Q1 2007
California and Florida Cities Account for 13 of Top 20 Metro Areas

IRVINE, Calif. – April 29, 2008 – RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its Q1 2008 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 649,917 properties during the first quarter, a 23 percent increase from the previous quarter and a 112 percent increase from the first quarter of 2007. The report also shows that one in every 194 U.S. households received a foreclosure filing during the quarter.

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1 million properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.

“Foreclosure activity in the first quarter increased on a year-over-year basis in 46 out of the 50 states and in 90 of the nation’s 100 largest metro areas, demonstrating that most regions of the country are seeing more foreclosures,” said James J. Saccacio, chief executive officer of RealtyTrac. “In some areas there are also some unusual, non-market factors impacting the foreclosure numbers. For example, the city of Philadelphia in late March issued a temporary moratorium on all foreclosure auctions for April, and the city has since adopted a program that will delay foreclosure proceedings on owner-occupied properties until the owners have met face-to-face with lenders to attempt a loan workout plan that would prevent foreclosure.

“While we’re hopeful that programs like those in Philadelphia will have a positive long-term impact, they could be simply deferring another flood of foreclosures,” Saccacio continued. “And that could extend the length of time it takes the market to recover from this downward cycle, in which we’ve already seen seven consecutive quarters of increasing foreclosure activity.”

Nevada, California, Arizona post top state foreclosure rates
One in every 54 Nevada households received a foreclosure filing during the first quarter, the highest foreclosure rate among the states and 3.6 times the national average. Foreclosure filings were reported on 19,595 Nevada properties during the quarter, up 3 percent from the previous quarter and up 137 percent from the first quarter of 2007.

Foreclosure filings were reported on 169,831 California properties during the first quarter, the highest total among the states and a rate of one in every 78 households — the nation’s second highest foreclosure rate. Foreclosure activity in California increased 32 percent from the previous quarter and was up nearly 213 percent from the first quarter of 2007.

Arizona documented the nation’s third highest state foreclosure rate, with one in every 95 households receiving a foreclosure filing during the quarter. Foreclosure filings were reported on 27,404 Arizona properties during the quarter, up 45 percent from the previous quarter and up nearly 245 percent from the first quarter of 2007.

Foreclosure filings were reported on 87,893 Florida properties during the first quarter, the second highest state total and giving Florida the nation’s fourth highest foreclosure rate — one in every 97 households received a foreclosure filing during the quarter. Foreclosure activity in the state was up 17 percent from the previous quarter and up 178 percent from the first quarter of 2007.

Colorado foreclosure activity increased 33 percent from the previous quarter and 78 percent from the first quarter of 2007, and the state’s foreclosure rate ranked No. 5 among the states. Foreclosure filings were reported on 18,996 Colorado properties during the quarter, a rate of one in every 110 households.

Other states with foreclosure rates among the top 10 were Georgia, Michigan, Ohio, Massachusetts and Connecticut.

Top 20 metro areas include Las Vegas, Detroit, Miami, Atlanta, Los Angeles
The Q1 2008 U.S. Foreclosure Market Report also ranks the nation’s 100 largest metropolitan areas by foreclosure rate. California and Florida metro areas accounted for 13 of the top 20 metro foreclosure rates, with the California cities of Stockton and Riverside-San Bernardino taking the No. 1 and No. 2 spots.

One in every 30 Stockton households received a foreclosure filing during the quarter — 6.6 times the national average — and one in every 38 Riverside-San Bernardino households received a foreclosure filing during the quarter — more than five times the national average. Other California metro areas in the top 20 included Bakersfield at No. 4, Sacramento at No. 5, San Diego at No. 9, Oakland at No. 10, Fresno at No. 12, Los Angeles at No. 17 and Orange County at No. 19.

Las Vegas documented the third highest metro foreclosure rate, with one in every 44 households receiving a foreclosure filing during the quarter. The metro area’s foreclosure activity increased 1 percent from the previous quarter and 134 percent from the first quarter of 2007.

Detroit foreclosure activity in the first quarter decreased 22 percent from the previous quarter and was down almost 4 percent from the first quarter of 2007, but the metro area’s foreclosure rate still ranked No. 6, with one in every 68 households receiving a foreclosure filing during the quarter. Phoenix foreclosure activity increased 46 percent from the previous quarter and 294 percent from the first quarter of 2007, and the metro area’s foreclosure rate ranked No. 7, with one in every 70 households receiving a foreclosure filing during the quarter.

The highest ranked Florida metro area was Fort Lauderdale, which ranked No. 8 with one in every 73 households receiving a foreclosure filing during the quarter. Other Florida metro areas in the top 20 included Orlando at No. 13, Miami at No. 14 and Sarasota-Bradenton-Venice at No. 15. The foreclosure rate in Tampa-St. Petersburg-Clearwater ranked No. 21.

Other metro areas with foreclosure rates among the top 20 included Denver at No. 11, Atlanta at No. 16, Cleveland at No. 18  and Memphis, Tenn., at No. 20.

Report methodology
The RealtyTrac Monthly U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the quarter — broken out by type of filing at the state and national level. Data is also available at the individual county level. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during the quarter only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous quarter. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

U.S. Foreclosure Market Statistics by State – Q1 2008

*Actual increase may not be as high due to data collection changes or improvements 

About RealtyTrac Inc.
Ranked as the third largest real estate site by MediaMetrix and No. 53 on Inc. magazine’s 2006 Inc. 500 list of the nation’s fastest-growing private companies, RealtyTrac Inc. (realtytrac.com), is the leading online marketplace for foreclosure properties, providing all the resources that home seekers, investors and real estate agents need to locate, evaluate and buy properties below market value.

Founded in 1996, RealtyTrac publishes the largest and most comprehensive national database of pre-foreclosure, foreclosure, For Sale By Owner, resale and new homes, with more than 1 million properties across the country, property reports, productivity tools and extensive professional resources. RealtyTrac hosts nearly 3 million unique visitors monthly and has been chosen to supply foreclosure data to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal. For current news and information regarding foreclosure-related issues and trends, visit our blog at www.ForeclosurePulse.com.

###

 IRVINE, CA - RealtyTrac® released its Q1 2008 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 649,917 properties during the first quarter, a 23 percent increase from the previous quarter and a 112 percent increase from the first quarter of 2007. The report also shows that one in every 194 U.S. households received a foreclosure filing during the quarter.

“Foreclosure activity in the first quarter increased on a year-over-year basis in 46 out of the 50 states and in 90 of the nation’s 100 largest metro areas, demonstrating that most regions of the country are seeing more foreclosures,” said James J. Saccacio, chief executive officer of RealtyTrac. “In some areas there are also some unusual, non-market factors impacting the foreclosure numbers. For example, the city of Philadelphia in late March issued a temporary moratorium on all foreclosure auctions for April, and the city has since adopted a program that will delay foreclosure proceedings on owner-occupied properties until the owners have met face-to-face with lenders to attempt a loan workout plan that would prevent foreclosure.

“While we’re hopeful that programs like those in Philadelphia will have a positive long-term impact, they could be simply deferring another flood of foreclosures,” Saccacio continued. “And that could extend the length of time it takes the market to recover from this downward cycle, in which we’ve already seen seven consecutive quarters of increasing foreclosure activity.”

Nevada, California, Arizona post top state foreclosure rates
One in every 54 Nevada households received a foreclosure filing during the first quarter, the highest foreclosure rate among the states and 3.6 times the national average. Foreclosure filings were reported on 19,595 Nevada properties during the quarter, up 3 percent from the previous quarter and up 137 percent from the first quarter of 2007.

Foreclosure filings were reported on 169,831 California properties during the first quarter, the highest total among the states and a rate of one in every 78 households — the nation’s second highest foreclosure rate. Foreclosure activity in California increased 32 percent from the previous quarter and was up nearly 213 percent from the first quarter of 2007.

Arizona documented the nation’s third highest state foreclosure rate, with one in every 95 households receiving a foreclosure filing during the quarter. Foreclosure filings were reported on 27,404 Arizona properties during the quarter, up 45 percent from the previous quarter and up nearly 245 percent from the first quarter of 2007.

Foreclosure filings were reported on 87,893 Florida properties during the first quarter, the second highest state total and giving Florida the nation’s fourth highest foreclosure rate — one in every 97 households received a foreclosure filing during the quarter. Foreclosure activity in the state was up 17 percent from the previous quarter and up 178 percent from the first quarter of 2007.

Colorado foreclosure activity increased 33 percent from the previous quarter and 78 percent from the first quarter of 2007, and the state’s foreclosure rate ranked No. 5 among the states. Foreclosure filings were reported on 18,996 Colorado properties during the quarter, a rate of one in every 110 households.

Other states with foreclosure rates among the top 10 were Georgia, Michigan, Ohio, Massachusetts and Connecticut.

Top 20 metro areas include Las Vegas, Detroit, Miami, Atlanta, Los Angeles
The Q1 2008 U.S. Foreclosure Market Report also ranks the nation’s 100 largest metropolitan areas by foreclosure rate. California and Florida metro areas accounted for 13 of the top 20 metro foreclosure rates, with the California cities of Stockton and Riverside-San Bernardino taking the No. 1 and No. 2 spots.

One in every 30 Stockton households received a foreclosure filing during the quarter — 6.6 times the national average — and one in every 38 Riverside-San Bernardino households received a foreclosure filing during the quarter — more than five times the national average. Other California metro areas in the top 20 included Bakersfield at No. 4, Sacramento at No. 5, San Diego at No. 9, Oakland at No. 10, Fresno at No. 12, Los Angeles at No. 17 and Orange County at No. 19.

Las Vegas documented the third highest metro foreclosure rate, with one in every 44 households receiving a foreclosure filing during the quarter. The metro area’s foreclosure activity increased 1 percent from the previous quarter and 134 percent from the first quarter of 2007.

Detroit foreclosure activity in the first quarter decreased 22 percent from the previous quarter and was down almost 4 percent from the first quarter of 2007, but the metro area’s foreclosure rate still ranked No. 6, with one in every 68 households receiving a foreclosure filing during the quarter. Phoenix foreclosure activity increased 46 percent from the previous quarter and 294 percent from the first quarter of 2007, and the metro area’s foreclosure rate ranked No. 7, with on