Foreclosure rates spike in suburbs

Foreclosures are rising faster in affluent suburbs such as Lake Oswego and Hillsboro than in the city of Portland.

Share this article!

Foreclosure rates in the first six months of the year rose faster in the suburbs than in the city of Portland.

Rates rose 20% in Lake Oswego and 10% in Hillsboro, compared to 6.5% in Portland.

“The foreclosure activity that is occurring in suburban markets in Oregon is unprecedented,” says Tom Cusack, a retired federal housing manager in Portland who continues to track the issue via his Oregon Housing Blog. “It’s affecting not just rural areas, not just inner-city neighborhoods, but suburban neighborhoods, probably more substantially than any time in the past,” Cusack says.

Recent state and national statistics also reveal a counterintuitive trend — affluent homeowners are going into foreclosure lately at a higher rate than others.

Cusack recently analyzed data for Oregonians who took out traditional 30-year Federal Housing Administration loans since mid-2008. He found that the greater the loan amount, the greater the chances those became problem loans.

Read more at the Portland Tribune.