U.S. home foreclosures surge 75% in 2007

An 'alarming stat'

Economist Steve Affinito told BloggingStocks Tuesday that although he had anticipated a bad foreclosure statistic for 2007, the figure was worse than he had expected.

"The 2007 foreclosure stat is alarming and will serve as a major drag on the economy in 2008. In many cases lower home values are preventing home owners from refinancing to lower rates to save their homes before higher payments take effect," Affinito said. "In addition to the HOPE NOW plan, the Congress and the president need to pass a comprehensive home mortgage rescue plan and an emergency funding plan to slow the upward trend in foreclosures, and to provide immediate emergency help to homeowners."

Affinito added that "given the number of variable interest mortgage resets in 2008, the foreclosure total is likely to rise substantially again in 2008, further delaying the housing sector's recovery."

State totals

Nevada's foreclosure rate led the nation, with 3.4% of its households entering some stage of foreclosure during the year, followed by Florida and Michigan at 2% and 1.9% respectively.

Further, RealtyTrac said that while foreclosure filings were up 75% in 2007, the number of properties in some stage of foreclosure was up 79%, indicating that an increasing number of properties may have just entered the initial stage of foreclosure in 2007 and could be going through the rest of the foreclosure process in 2008 -- unless lender and government intervention efforts begin to gain more traction.