The BBC reports that there has been a 93% climb in home foreclosures (also known as repossessions) over the past year. This is part of the credit problem that has been widely blamed for the falling stock prices over the past couple years. The BBC says there has also been a corresponding surge in layoffs at construction and real estate companies.
There was a 93% jump in filings for repossessions on the same month a year ago, and a 9% rise on June's figure, property firm RealtyTrac said.
The mortgage industry has been hammered by rising default payments.
Separate data showed a surge in job losses in the construction sector and among real estate firms, largely prompted by the slump.
Falling sales and decreasing prices have made it harder for homeowners who have hit difficulties to sell their homes and clear their debts.
The RealtyTrac data showed there were 179,599 foreclosure - or repossession - filings in July. This equates to one for every 693 households.
If the credit crunch continues to escalate there could be additional fallout from jobs lost in the housing sector and from a reduction in spending as homeowners become concerned about the falling value of their stock portfolio and home value. Even wealthy individuals may tighten spending if they watch the value of both their home and their investments shrink.
