Lisa Simpson
Aug 15,2008
In: Foreclosures

Alabama Foreclosures

Alabama State is in southeastern USA having about 4.6 million residents according to the census of 2006. Till the end of World War II, Alabama suffered economically because of its dependence on agriculture. But since then there has been a rapid transformation with varied developments. Today it is buzzing with activity in mineral works, education, health and banking. Many heavy industries have been making its presence felt. Alabama is also known as the Yellowhammer State after its state bird. Montgomery is the capital of Alabama and Birmingham is the largest city.

Although Alabama foreclosures are slow it is too early to cheer about it. During the first six months of 2008 figures showed that Alabama foreclosures were slowing down. Attorneys are cautious about these Alabama foreclosures slowdowns. They opine these Alabama foreclosures do not positively indicate that the mortgage crisis is blowing over. The banks do not want to sit with more Alabama foreclosures on their shoulders and as such they are eager to sit down to refinancing and modification talks with the borrowers who are in trouble.

From January to June this year there were 3,529 Alabama foreclosures according to RealtyTrac. The word foreclosure roughly covers all the three stages of the judicial process from default and auction notice to bank repossession. From the figures of Alabama foreclosures it seems that that the foreclosure rate is 1:600. The good news is that these Alabama foreclosures figures are far below the national statistics. Alabama foreclosures during the second quarter of this year made the state rank 43rd among the offending states and 7th among those states with the least foreclosures. A year ago Alabama foreclosures had been slightly higher and the state had ranked 38th.

Alabama foreclosures can be compared to the national figure of foreclosure during the first two quarters – it being 573,397 marking an increase of 142%. The number of Alabama foreclosures show that its position is much better than other parts of the country but that does not mean it can rest on its heels and not think about the future. What is causing worry is that the general economic slump is causing not only the sub-prime borrowers but also the prime ones to fall into foreclosure. The value of the houses have drastically gone down making the loan amount often greater than the value of the property. Legal and economic pundits opine that it will take another 18 months for the market to find its level.