For the first half of 2012, large metropolitan areas have experienced a 60 percent increase in foreclosure filings.
Despite a slowdown in foreclosure starts for California, the state is still ranking high for mortgage loan defaults. Seven out of the ten cities with the highest rates of foreclosure are in California, according to data released Thursday from RealtyTrac.
Stockton, California, which recently filed for bankruptcy, has the highest rate of home seizures nationally, with one out of every thirty-eight homes facing foreclosure. Other California cities in the grip of a foreclosure crisis include Modesto, Merced, Bakersfield and Visalia-Porterville.
Pittsburg, Chicago and New York also ranked in the top ten cities with foreclosure activity spiking 25 percent.
Phoenix, Las Vegas and Atlanta also had an increase in foreclosures.
In all of these metropolitan areas and increase in default activity means that home prices could be further depressed once all of these properties hit the market.
Overall national foreclosure rates rose in June over May. Realty experts stated last year that foreclosures would increase in 2012 after the largest banks settled investigations into their unsavory document processing practices.
Though foreclosure rates are on the decline many people are taking steps to prevent foreclosure, either through mortgage modifications, short sales or federal programs, such as HAMP aimed to help responsible homeowners.Some desperate homeowners see a personal bankruptcy as another viable option for keeping their homes.
Even though it is possible for a homeowner to negotiate for a mortgage modification or short sale directly with their lender, it can be frustrating and frequently unsuccessful. For this reason they find it is best to hire a foreclosure attorney to deal with the bank on their behalf.