In February, 2,080 homes in Wisconsin entered foreclosure, a 34-percent increase compared with February of 2007, according to data complied by ForeclosuresWI.com, a provider of foreclosure resources and statistics.
As the nation’s housing market has collapsed, Wisconsin foreclosures increased 70 percent from 12,311 in 2005 to 20,995 in 2007.
"These numbers are staggering," said Robert Jansen, president of ForeclosuresWI.com. "We expect foreclosures to remain at escalated levels well into 2008, with some experts not predicting a housing market recovery until 2010."
Several factors are contributing to the rising number of foreclosures, Jansen said, including adjustable rate mortgage resets, the soft housing market and the collapse of the subprime mortgage market.
"Adjustable-rate and exotic/subprime mortgage rate resets continue to result in significant increases to many homeowners’ monthly mortgage payments," Jansen said. "Furthermore, the cooling of the housing market and overall increase in the number of homes on the market has made it more difficult for those facing trouble to quickly sell their home to avoid foreclosure. Compounding the issue, many lenders have tightened lending standards in the wake of the subprime mortgage crisis and skyrocketing mortgage defaults, which eliminates many refinancing options for those in trouble."
