To date, Nevada holds the record as the state with the highest volume of foreclosed properties. When it comes to cities, the record could be somehow altered. A thorough study and review has prompted Forbes Magazine to forecast that in 2008, the city of Jacksonville would take the record as America's foreclosure capital. The forecast was backed by ratings agency Moody's, which has helped look at the US' biggest 50 foreclosure markets.



How bad is the situation in the city? The number of Jacksonville distressed properties rose to 4,000 in 2007. When 2008 set in, it was estimated that about 1,000 households in the city have been filing for foreclosure monthly. If the homes would be completely foreclosed, by the end of 2008, there would logically be 12,000 Jacksonville distressed properties. That is three times the overall volume in 2007.

There are several reasons attributed for the uncontrollable jump in Jacksonville distressed properties. For one, poor regulation is identified as a reason as no watchdog regulates and controls financial firms' products. Adjustable rate loans have actively been offered to borrowers to provide maximum loan amounts, even without favorable terms.

Back to the prediction for Jacksonville distressed properties, Forbes and Moody's have other reasons. The companies are holding dismal and bearish outlook for the foreclosure market. More job losses are expected in the city next year. Consequently, more delinquencies or repayments of mortgages and amortizations are inevitable.

The forecast is dismal to Jacksonville's home market. But it is one that has surely sent numerous home buyers into raves. Surely, more home investors will be enabled to buy Jacksonville foreclosure properties at very reasonable price tags, usually about 20% to 60% off actual home values.