U.S. foreclosures up with joblessness

WASHINGTON, June 23 (UPI) -- Escalating rates of foreclosures involving U.S. homeowners have turned from a subprime mortgage crisis to an unemployment crisis, analysts said.

"The ripple effect (of foreclosures) is just broadening out to cover a lot more places," Susan Wachter at the University of Pennsylvania's Wharton School told USA Today.

"What we're seeing now are people who are being impacted by the slowdown," Deputy Housing and Urban Development Secretary Ron Sims said.

RealtyTrac, which monitors housing activity, said foreclosure rates in 40 U.S. counties had doubled in May from a year ago.

Although down 6 percent from April, foreclosures in May were 18 percent higher than a year ago.

But many of the recent foreclosures are taking place far from areas normally associated with a pre-recession building boom.

Foreclosure rates have recently increased sharply in York, S.C., and Green Bay, Wis. In Boise, Idaho, the number of foreclosures has reached 770 a month, up from 350 a month a year ago.

Even government programs can do little to help those who have lost their jobs. "When people don't have any income, then it becomes really, really tough," Sims said.