Foreclosure numbers were up big again in July, rising 9% from June’s figures and a whopping 93% from a year ago, an unwelcome sign for already reeling credit markets. Foreclosures rose in 43 states, but California, Florida, Michigan, Ohio and Georgia accounted for over half of the the activity, Forbes reports.
The recent flurry of defaults is driven primarily by borrowers with subprime and adjustable mortgage rates. With the housing market flattening, these borrowers are unable to sell their homes to clear debt when troubles arise. The resulting boom in foreclosures has further depressed the housing market and triggered unrest in financial markets around the world.