May 15, 2008
NEWS ANALYSIS: Why Does WV Have Such Low Foreclosure Rates?
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Another month clicks over -- April -- and West Virginia again posts the third lowest foreclosure rate in the nation, 48th -- an enviable figure bested once again only by North Dakota and Vermont (see accompanying story).
I've yet to see a story explaining why West Virginia, Kentucky, North Dakota, Vermont, Alabama, Mississippi and Montana have low foreclosure rates. None of the states rank high in per capita income, but somehow people with mortgages are faring better than richer states like California, Nevada, Florida, Ohio, Virginia and Maryland.
Only one in 11,704 Mountain State households received a foreclosure notice in April, compared with a U.S. rate of one in 519. Maryland ranked 6th in foreclosures, with one in 360 total households receiving a foreclosure notice; Ohio had one in 432, ranking 8th in the nation; Virginia was 12th in the nation, with one in 618 households receiving a foreclosure notice. Pennsylvania ranked 33rd, with one in 1,670 households receiving a foreclosure notice in April. Kentucky ranked 43rd, with one in 3,702 households receiving a foreclosure notice.
A couple of months ago, I posed the question to two bankers in Summers County, WV and they said the reason West Virginia has such a low foreclosure rate is that subprime mortgages were never widely used in conservative West Virginia. The two bankers said that conservative lending policies prevail in the state and that housing prices are still affordable for most Mountain State residents.
Anecdotal evidence suggests that West Virginians, with one of the highest homeownership ratios in the country, value their homes and will do whatever is necessary to keep them. This contrasts with Nevada, which has the highest foreclosure rate in the nation. What happens in Las Vegas stays in Las Vegas, unless it's foreclosed by the local bank.
Actually, West Virginia in 2005 had the nation's highest homeownership ratios, at 81.3 percent, compared with the U.S. average of 68.9 percent (source: http://www.infoplease.com/ipa/A0780145.html). California in 2005 had a homeownership rate of 59.7 percent and it had the second highest foreclosure ratio in April, with one in 204 households receiving one form or another of foreclosure notice. Nevada, with the highest foreclosure rate -- one in 146 households -- had a homeownership rate of 63.4 percent in 2005, well below the U.S. average and far below West Virginia's 81.3 percent.
There could be a correlation between homeownership rates -- although Florida, with the nation's 3rd highest foreclosure rate in 2005 had a homeownership rate of 72.4 percent, well above the U.S. rate.
Then again, maybe the reason why West Virginians are riding out the biggest housing crisis in year boils down to the solid values that make the Mountain State such a livable place. I'd like to think this is the main reason -- however anecdotal it is.
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NEWS ANALYSIS: Why Does WV Have Such Low Foreclosure Rates?
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Another month clicks over -- April -- and West Virginia again posts the third lowest foreclosure rate in the nation, 48th -- an enviable figure bested once again only by North Dakota and Vermont (see accompanying story).
I've yet to see a story explaining why West Virginia, Kentucky, North Dakota, Vermont, Alabama, Mississippi and Montana have low foreclosure rates. None of the states rank high in per capita income, but somehow people with mortgages are faring better than richer states like California, Nevada, Florida, Ohio, Virginia and Maryland.
Only one in 11,704 Mountain State households received a foreclosure notice in April, compared with a U.S. rate of one in 519. Maryland ranked 6th in foreclosures, with one in 360 total households receiving a foreclosure notice; Ohio had one in 432, ranking 8th in the nation; Virginia was 12th in the nation, with one in 618 households receiving a foreclosure notice. Pennsylvania ranked 33rd, with one in 1,670 households receiving a foreclosure notice in April. Kentucky ranked 43rd, with one in 3,702 households receiving a foreclosure notice.
A couple of months ago, I posed the question to two bankers in Summers County, WV and they said the reason West Virginia has such a low foreclosure rate is that subprime mortgages were never widely used in conservative West Virginia. The two bankers said that conservative lending policies prevail in the state and that housing prices are still affordable for most Mountain State residents.
Anecdotal evidence suggests that West Virginians, with one of the highest homeownership ratios in the country, value their homes and will do whatever is necessary to keep them. This contrasts with Nevada, which has the highest foreclosure rate in the nation. What happens in Las Vegas stays in Las Vegas, unless it's foreclosed by the local bank.
Actually, West Virginia in 2005 had the nation's highest homeownership ratios, at 81.3 percent, compared with the U.S. average of 68.9 percent (source: http://www.infoplease.com/ipa/A0780145.html). California in 2005 had a homeownership rate of 59.7 percent and it had the second highest foreclosure ratio in April, with one in 204 households receiving one form or another of foreclosure notice. Nevada, with the highest foreclosure rate -- one in 146 households -- had a homeownership rate of 63.4 percent in 2005, well below the U.S. average and far below West Virginia's 81.3 percent.
There could be a correlation between homeownership rates -- although Florida, with the nation's 3rd highest foreclosure rate in 2005 had a homeownership rate of 72.4 percent, well above the U.S. rate.
Then again, maybe the reason why West Virginians are riding out the biggest housing crisis in year boils down to the solid values that make the Mountain State such a livable place. I'd like to think this is the main reason -- however anecdotal it is.
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