Repo Homes Numbers In Utah Begin To Crawl Up

Posted on September 8, 2008
Filed Under Repo Homes |

For many years the number of repo homes in Utah had been falling but the trend has reversed and the numbers are slowly crawling up. Foreclosures have gone up by 0.63% of 434,675 house mortgages. This calculates to 2,700 loans being foreclosed upon in the second quarter. It is an increase of 0.29% from the previous year’s second quarter according to Mortgage Bankers Association.

The foreclosure rate of 1:08 in Utah however is well below the national foreclosure rate. It s the fifth lowest state as regards foreclosure numbers nationally. But what is causing concern is that the numbers are beginning to inch upwards. Delinquency rates too are beginning to increase.

The foreclosure is a judicial process by which the lender seeks the permission of the court to seize the mortgaged property to realize unpaid dues. When the borrowers stumbles in making payments the loan is said to have gone into delinquency. At this point foreclosure proceedings have not yet been started against it.

In Utah 4.33% of the loans were in delinquency in the second quarter – an increase of 3.45% from the second quarter of the previous year. The national rate of delinquent loans is 6.22%. In the national foreclosure rate race Utah ranks 10th from the bottom.

It is the general economy of Utah that has generated jobs and helped to keep the foreclosure wolf at bay. The unemployment figure has so far been negligible. More jobs meant money in the pockets of the residents to ward off foreclosures. Even if workers are laid off they are able to quickly find jobs in other units.

Another factor has been the increase in value of houses. People residing in areas where the appreciation of houses increase, can easily ward of foreclosures, by selling or refinancing. Unfortunately this year a tendency is being noticed that house value is falling. Some regions are seeing no increase whatsoever while others are showing a positive decline in selling value. The houses are taking a longer time to sell indicating that buyers are at a premium and not easily available. This leaves the borrower with no other option but to succumb to foreclosure.

To make matters worse the job market has to all practical purposes come to a halt in Utah. The condition of the economy is such that hardly any jobs are being created. The writing of worse days ahead is on the wall.