The Cities Where Foreclosure Rates Are Skyrocketing

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10. Columbus, Ohio
> Quarterly increase in foreclosures: +32%
> # of Foreclosures Q3 2011: 2,273
> Unemployment: 7.6%
> % home value down from peak: -12.42%

Columbus hit its median home value peak in the first quarter of 2006. Since that time, home values have declined a relatively modest 12.4%, including a 3.4% drop last year. By the second quarter of 2012, Fiserv projects that homes in the area will lose another 2.3% of their value. Median family income in Columbus is above the national average, and unemployment is just 8%, a full percentage point less than the national average. Despite the fact that things don’t look so bad for the Columbus housing market compared to other regions, the city foreclosure rate still increased by 32% last quarter. A total of 2,273 homes were foreclosed upon during that time.

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9. Cape Coral-Fort Myers, Florida
> Quarterly increase in foreclosures: +35%
> # of Foreclosures Q3 2011: 1,743
> Unemployment: 11.2%
> % home value down from peak: -59.3%

There is arguably no single housing market with a worse long-term outlook than southwest Florida, and the Cape Coral-Fort Myers region is the worst of these. Housing prices in the have already dropped 59.3% from their peak, and Fiserv project them to decline another 12.2% by the second quarter of next year. According to Corelogic, 47% of the homes in the Cape Coral-Fort Myers area are worth less than their mortgages because of declining values. Foreclosures have increased 35% in the last quarter, and with no sign of recovery in the immediate future that trend may worsen in the coming months.

8. Vallejo-Fairfield, California
> Quarterly increase in foreclosures: +36%
> # of Foreclosures Q3 2011: 1,348
> Unemployment: 11%
> % home value down from peak: -59.1%

As of last month, Vallejo-Fairfield had the second-highest foreclosure rate in the country, with one out of every 51 homes being foreclosed upon in the third quarter of this year. This was a 36% increase in foreclosures from the second quarter. Home values have dropped 7.5% in the past year and are projected by Fiserv to drop an additional 4.9% by the second quarter of 2012. A remarkable 53% of homes in the region are worth less than their mortgages. This is the seventh highest rate of homes with underwater mortgages in the country.

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7. Fresno, California
> Quarterly increase in foreclosures: +41%
> # of Foreclosures Q3 2011: 2,174
> Unemployment: 14.9%
> % home value down from peak: -54%

Fresno’s economy has continued to suffer since housing prices began to drop in 2006. It currently has an unemployment rate of 14.9%, which is one of the highest in the country. Home prices peaked in the first quarter of 2006 and have been decreasing since. The metropolitan area also has one of the highest underwater mortgage rates in the country, with a negative equity share of nearly 46%. In the last year alone home prices have dropped 11%.

6. Palm Bay-Melbourne-Titusville, Florida
> Quarterly increase in foreclosures: +44%
> # of Foreclosures Q3 2011: 1,039
> Unemployment: 11.6%
> % home value down from peak: -53.4%

More than 1,000 homes were foreclosed upon in the Palm Bay-Melbourne-Titusville region last quarter, a 44% increase from the previous three-month period. Nearly half of the region’s homes are worth less than their mortgages. With Fiserv projecting home values would drop 7.1% by next year and another 4.9% the year after that, things may just get even worse.