There is hectic foreclosure activity being reported from all corners of Virginia States. With Virginia foreclosures filling the inventory books, the state is reeling under the pressure of an upward foreclosure trend.
Foreclosed homes in Frederick County have pushed the county on the top spot in the State and the county recorded one foreclosure being filed for every 151 households. This is in sharp contrast to the previous month when the foreclosure rate was one per 1,932 households. The county further reported 180 new foreclosed homes filings in September 2007 and managed to rank fourth in the Virginia State while Loudoun County topped the list followed closely by counties like Fairfax and Prince William. These 4 counties together added up to over 50% of all foreclosed houses of Virginia for the month.
However, some good news came in from Winchester and Clarke County as they remained low with hardly any fluctuations from the earlier month. While Winchester County reported only a single foreclosure, Clarke County reported 4, with a rate of 1 per 1495 households. Rising foreclosure rates in Fredrick County haven’t surprised the market experts as it has been a known fact that many country residents are getting adjustable rate mortgage loans to finance new homes. Moreover, interest rates for ARMs though designed to keep the rate of interest steady for a period of 2-3 years have now begun to fluctuate.
Poor spending habits, high incidents of divorce, unemployment, and other hardships have been causing an increase in foreclosures and are pushing the Virginia towards the top of foreclosures by state listing. Additionally, adding to the woes of an already weak market are homeowners who thought they could make quick bucks by buying a home with ARM only to resell it before the interest rates changed.
