Foreclosures on the rise.

As home prices rise, foreclosures drop. People are reluctant to walk out of houses in which they have some equity.

But when house prices flatten or drop, house equity sometimes drops to zero or becomes negative (that’s what “my house is under water” used to mean before Katrina). One sign of this is usually an increase in foreclosures, and that is what has been happening accroding to RealtyTrac, an online foreclosure data service.

There are now (March) roughly 117,000 houses in some state of foreclosure, up 68% from February.

Delinquencies are also up. LoanPerformance, a subsidiary of Real Estate Solutions, reports that 3% of loans made to people with poor credit were more than 90 days overdue in March, up from 2.84% in February. Even loans made to people with excellent credit showed an increase in delinquencies.

Worst states? Not what you might expect: Indiana, Ohio and Michigan.

You must be logged in to post a comment.