Many homebuyers are being more creative, taking more risks in getting into the housing market. [According to SMR Research 38.1% of home buyers put less than 5% of the purchase price down, up from 30.6% in 2000. [USA Today]](http://www.usatoday.com/money/perfi/housing/2005-08-16-megamortgages-usat_x.htm) Piggy back financing, obtaining a line of credit simultaneously with the house purchase to put 20% down to avoid PMI insurance, has also been rising. SMR says 48.2% of buyers used piggy backs up from 19.9% in 2001.
[Americans now shoulder record levels of housing debt — more than 8 percent of homeowners spend at least half their income on their mortgage. [Washington Post]](http://www.washingtonpost.com/wp-dyn/content/article/2005/05/29/AR2005052900972_pf.html)
Well, as more people increase their borrowing risk, foreclosure rates rise.
Foreclosure.com published a list, by state, of [foreclosure inventory available for sale in August. [Valuation Review: Pd. Sub.]](http://www.valuationreview.com/pub/news/headlines/4148-1.html?type=pf) There was a 3% increase from 90,611 units in 93,440.
Sample media foreclosure coverage from around the country:
[Texas Up 6.6% from July to August 2005 [San Antonio Bus Journal]](http://sanantonio.bizjournals.com/sanantonio/stories/2005/09/05/daily23.html)
[Massachusetts Up 29% from August to August 2004 [RISMedia]](http://www.rismedia.com/index.php/article/articleview/11685/1/1/)
[Georgia Up 4.4% from June to July 2005 [Realtor.org]](http://www.realtor.org/rmoDaily.nsf/AllStories/083105#0694FE914)
See previous post: [PMI Gets You In The House: Now Get Rid Of It](http://matrix.millersamuel.com/?p=85)
Tags: NAR, National Association of Realtors
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