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Sun and Rust Belt Cities Dominate Remainder of Nation's Top 10
New Orleans and Boston Among Cities With Lowest Foreclosure Rates
Indianapolis, Atlanta and Dallas posted the nation's three highest
metropolitan foreclosure rates in the first quarter of 2006, according to
the RealtyTracT U.S. Metropolitan Foreclosure Market Report, which ranks the
foreclosure rates of the 100 largest metropolitan areas.

Cities in the Sun Belt and Rust Belt generally had the highest foreclosure
rates in the first quarter of 2006, while cities in the Northeast and Gulf
Coast documented some of the lowest.
"Indianapolis narrowly edged out Atlanta as the city with the highest
foreclosure rate in Q1," said James J. Saccacio, chief executive officer of
RealtyTrac. "Most of the cities with the highest foreclosure rates have
above-average unemployment rates and below-average home price appreciation.
Unemployment is a major reason why homeowners stop making mortgage payments,
and slow home price appreciation can make it harder for homeowners in
default to refinance or sell to stop foreclosure."
Saccacio noted that other economic factors such as decreasing affordability,
rising interest rates and speculative buying can also fuel foreclosures. He
cited Jacksonville, Fla. and Las Vegas Nevada, both of which documented
foreclosure rates in the top 10 despite below-average unemployment and
above-average home price appreciation.
"Because of the high home prices in many areas, more home buyers have
stretched themselves financially with creative, and often risky, financing
that involves adjustable interest rates, interest only and negative
amortization loans" he said. "Home buyers with these types of loans are more
susceptible to default and foreclosure when interest rates move higher."
Metro Area% of households in foreclosure #households for every foreclosure
1. Indianapolis1.4569
2. Atlanta 1.4270
3. Dallas1.0199
4. Memphis, Tenn.0.99101
5. Denver0.95105
6. Detroit0.83120
7. Jacksonville, Fla.0.75133
8. San Antonio0.75133
9. Canton, Ohio 0.72140
10. Las Vegas0.71140

Indianapolis documented a foreclosure rate of one foreclosure for every 69
households, while Atlanta's foreclosure rate was one foreclosure for every
70 households. Other top-10 foreclosure rates ranged from one foreclosure
for every 99 households in Dallas-Fort Worth to one foreclosure for every
140 households in Canton, Ohio and Las Vegas.
The nation's largest metropolitan area, New York City, documented a
foreclosure rate - one foreclosure for every 434 households - that ranked
59th among the top MSAs. First-quarter foreclosures were even less common in
the New England states of Providence, R.I. and Boston, both of which
registered foreclosure rates among the nation's 10 lowest.
Several Gulf Coast cities - New Orleans, Mobile, Ala., Baton Rouge, La. and
Jackson, Miss. - also documented foreclosure rates among the nation's 10
lowest. Many defaulted properties in the Gulf Coast region are not entering
foreclosure because of an extended foreclosure moratorium imposed by the
U.S. Department of Housing and Urban Development in counties affected by
Hurricane Katrina.