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| Detroit 'has most repossessions' | Detroit 'has most repossessions' |
| (18 minutes later) | |
| The Detroit area had the highest rate of homes entering the repossession process in the US in 2007, a study by mortgage research firm RealtyTrac says. | The Detroit area had the highest rate of homes entering the repossession process in the US in 2007, a study by mortgage research firm RealtyTrac says. |
| Several cities in California followed close behind, the analysis suggested, highlighting growing problems in some previously prosperous areas. | Several cities in California followed close behind, the analysis suggested, highlighting growing problems in some previously prosperous areas. |
| The number of homes facing action which could lead to repossession rose in 86 of the 100 largest metropolitan areas. | The number of homes facing action which could lead to repossession rose in 86 of the 100 largest metropolitan areas. |
| The problems largely stem from homeowners with sub-prime loans. | The problems largely stem from homeowners with sub-prime loans. |
| Unemployment factor | Unemployment factor |
| The US sub-prime mortgage sector offered higher-risk loans to people with a poor credit history. | The US sub-prime mortgage sector offered higher-risk loans to people with a poor credit history. |
| See map of highest US repossession rates | See map of highest US repossession rates |
| Analysts say that sellers often neglected to properly explain to the borrowers - usually on low-incomes - that the new sub-prime mortgages would "reset" after two years. | Analysts say that sellers often neglected to properly explain to the borrowers - usually on low-incomes - that the new sub-prime mortgages would "reset" after two years. |
| The reset mortgage could be at double the original interest rate, and this has led to many homeowners falling behind on payments. | The reset mortgage could be at double the original interest rate, and this has led to many homeowners falling behind on payments. |
| Falling sales and decreasing prices have made it harder for homeowners who have hit difficulties to sell their homes and clear their debts. | Falling sales and decreasing prices have made it harder for homeowners who have hit difficulties to sell their homes and clear their debts. |
| Last month, RealtyTrac said that across the US there were 2,203,295 foreclosure filings - which include default notices, auction sale notices and bank repossessions - up 75% from 2006 | Last month, RealtyTrac said that across the US there were 2,203,295 foreclosure filings - which include default notices, auction sale notices and bank repossessions - up 75% from 2006 |
| Detroit's rising unemployment level, triggered by Michigan's economic downturn, has been blamed for people falling behind on repayments. | Detroit's rising unemployment level, triggered by Michigan's economic downturn, has been blamed for people falling behind on repayments. |
| About 4.9% of households in the Detroit metro area were in some stage of repossession, or foreclosure, during 2007, the RealtyTrac study said. The rate represents a 69% jump from 2006. | About 4.9% of households in the Detroit metro area were in some stage of repossession, or foreclosure, during 2007, the RealtyTrac study said. The rate represents a 69% jump from 2006. |
| Stockton, California was ranked second at 4.8% with the Las Vegas metropolitan area third at 4.2%. | Stockton, California was ranked second at 4.8% with the Las Vegas metropolitan area third at 4.2%. |
| California had four metro areas in the top 20 places in the table. | |
| 1. Detroit, MI 2. Stockton, CA 3. Las Vegas, NV4. Riverside--San Bernardino, CA 5. Sacramento, CA 6. Cleveland, OH7. Bakersfield, CA8. Miami, FL 9. Denver-Aurora, CO10. Fort Lauderdale, FL Source: RealtyTrac | 1. Detroit, MI 2. Stockton, CA 3. Las Vegas, NV4. Riverside--San Bernardino, CA 5. Sacramento, CA 6. Cleveland, OH7. Bakersfield, CA8. Miami, FL 9. Denver-Aurora, CO10. Fort Lauderdale, FL Source: RealtyTrac |
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