Versión en Español
Foreclosures in Pennsylvania
Foreclosures in Pennsylvania are raging as it is also scorching entire USA. There are however differences in causes and results of foreclosures from one region to another. Therefore to understand foreclosures in Pennsylvania and its specific background as well as fallout one needs to know about the state. Pennsylvania or PA straddles the Northeast and Mid Atlantic areas of the country. It shares common borders with Delaware, Maryland, West Virginia, Ohio, New York and New Jersey. PA is often referred to as the Keystone State because of its central location that held together the first 13 colonies that went on to form the nation. It is also keystone economically as it has industries that are common both to the North (manufacture of wagons, rifles etc) and the South (agricultural products like food crops, tobacco etc.) PA also was predominantly a Quaker province that explains its conservative approach to life.
Pennsylvania is beautiful with a 51-mile shoreline hugging Lake Erie. Unfortunately despite its prosperity and idyll, bank owned homes in Pennsylvania are dominating the scene. Discriminatory lending cannot be blamed for the increase in bank owned homes in Pennsylvania because as per 2005 count nearly 87% are Whites and the Blacks comprise of only 11.20%. It cannot be said that economic weakness is the cause of foreclosures in Pennsylvania because it ranks 6th in USA as regards gross-state-product. Had it been independent then it would have ranked 17th among richest nations internationally. It is surprising that with urban manufacturing cities like Philadelphia and Pittsburgh, foreclosures in Pennsylvania are grabbing the headlines.
There was a slight improvement in foreclosures in Pennsylvania from April to May 2008 but nevertheless the number of foreclosures in Pennsylvania was much higher than its last year numbers. Bank owned foreclosures in Pennsylvania dropped by 1.5% in May from April but it spiked by11% from May of the previous year. It is feared that before this year draws to a close there will be further increases in bank owned homes in Pennsylvania because more mortgage rates are ready to reset to higher niches. Simultaneously those facing foreclosures in Pennsylvania cannot refinance or sell their house because of the slump in the real estate market. Despite the number of bank homes in Pennsylvania however the average price of houses in April this year remained the same as it was in the previous April - $190,000. The housing market is holding its ground and that is good news for all concerned. The foreclosure rate here is 1:1696 – much above the national rate of 1:483.
