National subprime mortgages increase number of Raleigh foreclosures
In a recent report taken out by the Center for Responsible Lending, it has been confirmed that the primary reason for increasing number of North Carolina bank foreclosures is the national subprime mortgages. According to them the national subprime mortgage market has grown from $35 billion in 1998 to $665 billion in 2008 and it is still increasing.
As a result of this, there are several homeowners who are in a fix as far as the rising monthly mortgage payments are concerned. Most homeowners are facing the risk of delayed payments or no payments, which has further spiked the rate of bank foreclosures. In the period between 1998 and 2008; the rate of North Carolina foreclosure homes spiked by 174% and this statistic has been provided by the Administrative Office of the Courts.
Wake County in North Carolina was severely hit as the rate of foreclosure homes hit a high and registered 276% between 1998 and 2008. Wake County also registered an increase of 7% from 2006 to 2007. A high rate of Raleigh bank foreclosures has caused a lot of discomfort for existing as well as new homeowners in the State.
Data taken out by various agencies show that Wake County registered around 4,461 foreclosures in 2007 with a spike of 20.2% as compared to the 3,711 foreclosures in 2006. In comparison, Mecklenburg County registered a 10.9% increase in the rate of foreclosure in the period between 2006 and 2007 and the real volume of foreclosed homes were 7,943, which was more than what Wake County had registered.
As a precautionary measure, the Attorney General in North Carolina is planning to announce the launching of a special tool that will help in preventing further increase in North Carolina foreclosure homes. Homeowners in the State will have to wait and watch out for the new proposal but till then there is no stopping for the increase in Raleigh foreclosure homes.