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3Q Foreclosure Filings Soar 71%

For the period covering July to September, the number of foreclosure filings has skyrocketed by 71 percent compared to the same period last year. The said percentage represents about 766,000 homes which entered some stage of foreclosure.

The data was gathered and reported by RealtyTrac Inc, an online foreclosure listings service provider. States with the highest foreclosure rate include California, Florida, Arizona, Ohio and Michigan. California foreclosure filings accounted for 25 percent of the total foreclosure filings for this period.

Based on the current trend, it will no longer be surprising if the number of foreclosure properties cross the one million mark by the end of the current year. Unfortunately, this number will represent 30 percent of all US homes for sale.

With the number of foreclosure filings soaring, experts are expecting for home prices to decline further. For most homeowners who have luckily escaped foreclosure, this is certainly bad news. A significant number of distressed homeowners have actually found themselves with larger mortgage debts compared to what their home is worth in the open market, making it difficult for them to refinance or even sell.

To make matters worse, the recent mess in the financial industry has certainly pushed the nation into a much more difficult position. Many economists are even saying that the country is already in recession, leaving millions more Americans worried about their homes. Buyers are also having a hard time with the credit crunch that has forced many lenders to tighten their lending guidelines and other requirements.

All these things are certainly not painting a very good picture of the US housing industry. The only hope left is for the $700 billion bailout plan to work and somehow revive the financial sector. If this happens, credit will once again be available and home buyers will step out of the woodwork.

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