Foreclosure rate skyrockets in April

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As big as America is, it is hard to really visualize just how severe this problem has become. So, let's put it in terms that are a bit easier to comprehend. Of all the homeowners in the country, 1 out of every 519 homes received foreclosure notices in the month. That's pretty scary if you think about it. Only 8 states did not have a higher foreclosure rate in April than they did in April of last year.

The main reasons for the rise in foreclosures is nothing new, and you are probably already too aware of all of the following factors; falling home sales, falling home prices, tighter mortgage lending and refinancing, and the slowing U.S. economy. These all add up to the perfect storm for homeowners.

What is becoming more than apparent, is that all the efforts that have been made by the government and mortgage industry are just not having the desired impact... at least not yet. How much worse will this situation get before things turn around is anyone's guess, but for now there still does not seem to be too much light coming from the end of the tunnel.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.