Tucson Foreclosures Double In The Second Quarter

Tucson area house foreclosures doubled during the months of April, May and June of this year, over that of the previous year, of the same period, according to RealtyTrac. Statistical data projected that in Tucson were on a continuous upswing, threatening not only borrowers lagging behind in payments but also house owners, whose market value of properties was tumbling down, shaking the very foundation of their security.

Among the metro areas in the US having the highest foreclosure rate, Tucson ranked 37th when one in every 148 households in Tucson area received a foreclosure filing in the second quarter of 2008. RealtyTrac had placed the Tucson foreclosure figures for the first quarter at the 54th position when one out of every 224 households received a foreclosure filing. That registered an increase of 51% from the foreclosure figures of January to March 2008.

Daren Blomquist, a RealtyTRac spokesman, analyzing the foreclosure data information said that there would be no respite for the property owners, as the foreclosure trend would continue its downward splurge well into the next year. Borrowers, who had bought houses during 2004 and 2005 under the adjustable-rate mortgage scheme, have found themselves cornered as their loan payments were rescheduled with every increase in interest rate, spiraling their expenses drastically to unmanageable levels.

John Strobeck, owner of Bright Future Business Consultants, opined that although the expenses of house owners have accelerated, it was not entirely unexpected. He also advised that property owners whose mortgage rates would reset in 2010 would benefit if they searched for other financing options, for e.g. obtaining a 30 year fixed mortgage or such other schemes available in the housing finance market.

The negative impact that the foreclosure crisis had on the people was irreparable. A house is termed as an asset in economic parlance. When blessed with children the house became a home and it was difficult to move out into a rental to tide over the problem. The feeling of being rendered homeless is an emotionally unbearable situation, coupled with anxiety, stress, frustration and failure. The number of families, losing their homes for the past two years had escalated to dizzy heights throughout the nation. Monica Sandschafer, the head organizer of Arizona Association for Community Reform Now (ACORN) blamed borrowers for accepting risky loans, when there was unemployment, price rise and fall in income. The banks usually sold off foreclosure properties at very low prices, bringing down value of houses further.