Utah Foreclosure Rate Climbs Higher

Aug 15, 2008 by Eric Ray

(KCPW News) Utah's home foreclosure rate continues to climb. According to a RealtyTrac report released this week, July foreclosures were up 27% over the previous month, and nearly 300% over July 2007. However, Wells Fargo economist Kelly Matthews says the problem may not be as bad as it sounds.

"If we define foreclosures as the completed process, that only accounts for 20% of what is being reported with 80% being composed of the notice of default and the notice of trustee sales," says Matthews.

That means that 80% of those foreclosures haven't completed the process yet. But, Matthews says that doesn't change the fact that there is a problem and he expects the foreclosure rate to continue to climb into next year.

On the other hand, home sales are beginning to rise as prices decline, even in states hardest hit by the housing crisis, like California, Florida, and Nevada. Matthews says increasing sales is the key to escaping the problem.

"It's all part of the process that as foreclosure numbers are going up, the way that we ultimately get through this is for the sales numbers to go up as fast or faster so that we stop putting new numbers in the pot, and we're taking out more than we're putting in," says Matthews.

The RealtyTrac report shows that Utah's four major metro areas all ranked in the top 100 nationally in foreclosures last month. St. George was ranked highest at 17th overall. Salt Lake City ranked 70th, and as a state, Utah had the 9th highest foreclosure rate in the country last month.

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