Foreclosure rates spike in suburbs


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

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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.

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