American home mortgage loans that end up foreclosing come mostly from the midsection of the U.S. Even though figures for foreclosure were down in 2004, according to Foreclosure.com, this news doesn't show how certain parts of America are increasingly filing for foreclosure. Granted, foreclosure statistics have finally leveled off after several years in the downward direction. In fact, this leveling is attributed to a better economy in the U.S. according to Mortgage Bankers Association of America. However, this picture leaves out the fact that the midsection of the US is experiencing foreclosures at an alarming rate. Why is this happening in just these parts?

To begin to understand this trend, you first need to know that foreclosure statistics are good indications of what's happening to household incomes and the nation's economy. These answers help experts tell if the nation's economy is healthy and if a household's income is keeping up with inflation. When a household is able to bring in an income that keeps up with inflation, foreclosure numbers are low. Conversely, when household income is stagnant and doesn't keep up with inflation, more homeowners turn to foreclosure. Other behind-the-scenes factors that lead to foreclosure,
especially across the mid-part of the U.S. are:

• Lots of job cuts force the newly unemployed homeowner to fall behind in mortgage payments and to eventually turn to foreclosure.
  
  
• Over-inflated home prices usually entail big monthly mortgage payments. Too big of a monthly mortgage compared to income often means high risks for foreclosure.
  
  
• Lending practices are often the cause behind increased foreclosures. Homeowners that otherwise wouldn't qualify for big home loans are able to qualify for second mortgages and other types of loans that are very difficult for this homeowner to responsibility afford and eventually look for a way out through foreclosure.

A foreclosure means good things to an investor who's poised to buy up the property and make a profit. For a homeowner in financial troubles, this can seem like a win-win situation compared to going through with a foreclosure. The problem with today's foreclosure market is many of these places are in such rough condition that it's almost not worth fixing up the properties. Also, many of these foreclosure properties are located in such undesirable locations that many investors don't want to come near the property. Even though some people consider foreclosure investors as vultures, these agents can truly help pick up a dragging economy and help some people's financial future. These agents end up negotiating prices on the property with banks for less than prime market prices. In the end, the bank benefits by not hiking up interest rates to cover these risks and losses.

According to CNN Money Real Estate Online, the top ranked counties of the U.S. with reported foreclosures in 2004 are for the most part down the center part of the nation:
1. Wayne County, MI (Detroit)
2. Cook County, IL (Chicago)
3. Marion County, IN (Indianapolis)
4. Dallas County, TX (Dallas)
5. Shelby County, TN (Memphis)

To view the entire list of foreclosed properties in the United States, go to http://www.ushud.com

Copyright 2005 Gillian Confait. All rights reserved.
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Gillian Confait is the owner of Foreclosure Phd Inc, a leading on-line resource for information relating to
foreclosures on the web. For more information visit her archive of articles: http://www.foreclosure.com

Article source: www.loanarticles.co.uk