Wednesday, May 14, 2008

Foreclosure Filings Hit Record In April

Survey sees more than 243,000 filings, up 65% from a year earlier, creating problems for local governments.
U.S. foreclosure filings reached a record high in April, rising almost 65% over the previous year and putting municipalities at risk by cutting into the value of taxed property, according to a study released Wednesday.

Some 243,353 households, nearly one in 519, received a foreclosure filing during April, according to the U.S. Foreclosure Market Report from RealtyTrac, an online marketplace that tracks foreclosed properties. That was up 4% from March, and surpassed the record of 239,851 set in August 2007.

The record number of foreclosures added their weight to an already saturated real estate market, pulling down home prices. Plunging home values reduce the money that cities, villages and towns collect in property taxes.

In particular jeopardy are parts of Nevada, California, Arizona and Florida, whose states maintained the highest foreclosure rates, according to RealtyTrac.
So the foreclusore crisis has made millions for the heads of Merrill Lynch, Countrywide and countless other Wall St. executives while straining the budgets of towns and cities throughout the nation. Who will ultimately pay for those shortfalls? It will be the remaining homeowners with higher taxes and lower property values. Do you still think this trickle down economic philosophy works?

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