Iowa has been a sheltered state in terms of foreclosures during the economic crisis that has deeply impacted much of the country over the last two years. But now we are seeing the numbers of foreclosures in Iowa climb; does this mean the housing trouble is getting worse?
Although it is distressing that homes in foreclosure in Iowa hit a new high of 2.82%, it is important to recognize that the homes included in this number only include properties that have been turned over to the bank, and not homes occupied by owners who are struggling to make payments. The distinction is important because the process of foreclosure in Iowa is lengthy and often takes at least 8 months to complete. Therefore, the numbers just released for the 2nd Quarter of this year are actually a reflection of what was happening with homeowners over a year ago.
To predict if foreclosures are headed up or down, the delinquency rate is a better indicator. During this same period (2nd quarter 2010), homeowners who were seriously delinquent on their payments dipped from the previous quarter. This sign of improvement may indicate that the worst is behind us. Fortunately, even with the current increase, Iowa’s foreclosure rate of 2.82% is still significantly better than the national average of 4.57%. Photo & stats source: http://bit.ly/c1Wxhr
Post by Tabitha Zesch, Relocation Director

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