Foreclosures Climb in 75% of Metro Areas

RealtyTrac, an online marketer of foreclosed homes, says that foreclosure filings climbed in 75% of the nation's metro areas during the first half of 2010.

California, Florida, Arizona and Nevada continue to lead the nation in the rate of foreclosures. Las Vegas was the worst-hit city.

According to spokesman Rick Sharga, unemployment has replaced toxic mortgages as the leading cause of foreclosures throughout the country.  "Las Vegas has seamlessly shifted from having a high level of foreclosures due to bad loans," said Sharga, "to defaults caused by a high level of unemployment." Some 14.5% of its work force was idle in June, up +2.1 points from last June.  Las Vegas had 1 filing for every 15 households in the metro area. 

The second highest rate was in Cape Coral/Fort Myers, Fla., with 1 for every 20 households. Two California cities, Modesto and Merced, tied for third with one filing for every 22 households.  One in every 48 Salt Lake City households filed foreclosure notices during the first six months of 2010, a +55% increase over the same period in 2009.  

Besides Salt Lake City, other metro areas where foreclosures have soared primarily due to the economy include Chicago, which saw filings climb +23% year-over-year to 1 in every 48 households. Charleston, S.C.'s, rate climbed +17% to 1 in every 68 homes, while Albuquerque saw a +157% jump in filings to 1 in 80 households.  Each of these cities has rising unemployment.