The month of July saw U.S. home foreclosures hit record high figures with 360,000 fillings, up 32% from the same time last year. One in every 335 homes received a foreclosure notice, a rise of 7% from June according to RealtyTrac.inc.
Despite ongoing government intervention at both federal and state level, the housing crisis continued to deepen as over 87,000 homes were repossessed, up from 79,000 in June taking it to the highest level since the foreclosure-listing firm began publishing data four years ago. Growing unemployment and falling property prices are also exacerbating the failures in home loans with default notices, auction and bank repossession on the rise across many states.
“July marks the third time in the last five months where we've seen a new record set for foreclosure activity" said RealtyTrac's chief executive, James J. Saccacio in a statement. "Despite continued efforts by the federal government and state governments will patch together a net of safety for troubled homeowners, we are seeing significant development in both the initial notices of default and in the bank repossessions."
Since April last year, home prices in 20 major US cities dropped 18% according to the S&P/Case-Shiller index, and the unemployment rate rose to 9.5% in June bringing the total number of unemployed Americans to 6.5 million, the highest figures since 1983.
Defaults by subprime mortgage borrowers with poor credit helped escalate the housing crisis which spread to prime borrowers as property prices fell. One in eight Americans are now behind on their mortgage payments or already facing foreclosure according to The Mortgage Bankers Association.
Nevada had the highest rate of foreclosures for the 31st month in a row with one in 13 households receiving a filling- more than six times the national average. California, Arizona, Florida, Utah, Idaho, Georgia, Illinois, Colorado and Oregon were the other states in the top ten for high foreclosure rates.
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So where exactly are these "safety nets" for the American people? Particularly "where" are the programs for people to save their homes? In my area, on the local news, they keep running stories about the families who are losing their homes and I never see any links for agancies who can help them.
ReplyDeleteSO...the government gave a gazillion dollars to the Lenders (like Wells Fargo) and they are supposed to give home owners some leway? Well it isn't happening!
If anyone knows where all the "programs" are, please pass that info along so we can in turn help out families in our own communities. Thanks for the factual update and stats.
Wasn't this so called stimulus bill that has been in effect meant to stop these foreclosures...I think it was...Seems it failed BIG TIME..
ReplyDeleteThe bail out / hand out's must stop. Who is going to help you when the time comes to pay the bill. Guess what, nobody.. Get real and see what is going on. a pay day will come soon and those that have prepared for it will make it, those that have not???
ReplyDeletewhere in Nevada is the solution to this cunundrum that is affecting everyone here?
ReplyDeleteWhat we've got here is just a combination of standard Obama BS, a monumental giveaway to the super wealthy bankers and CEOs, and to hell with the people. Sound familiar? You tell me: What is the difference between the Republicans and the Democrats except for which rights they want to do away with and how hard they lean on the Islamists? Anyone?
ReplyDeleteWell , look at it this way . There is not and should not be programs dedicated to reckless spenders, borrowers and lenders who took out loans for amounts way more then they can ever afford. A person making 80k can no way afford a house for 600,000 and they should have known that with or without some crooked loan officer bending their ear.
ReplyDeleteThere should be programs for potential borrowers who have at least 10% down , who are gainfully employed and who have good credit. Housing prices need to come down and should come down to a reasonable level. What is reasonable you ask ? Reasonable is when someone with a moderate income (such as teacher, police officer , postal worker) can afford a modest no frills house and actually have enough money for food !
Believe it or not this massive correction in housing is great for America and the American dream. We do not want to be a country where only 10% of the people who live in it can realistically afford a house without having to take oddball loans created to rip you off and make your bank your master for the rest of your life pouring 65% of your take home income toward 4 walls and a small yard.
Capitalism will rule and capitalism will determine the market for housing.
To qualify you need to have fallen behind but now be able to pay. It doesn't matter if you overpaid for the house. You need a credit application that was perfect, if you embellished you don't qualify. That leaves how many people? Stay in your house as long as you can, stash away as much cash as possible, and let the bank do what it has to do. These programs only delay the inevitable. Only after the crash hits bottom (1-2 more years as it is going now), and prices stabilize, can people who can prove they can actually afford a house be willing and able to buy it.
ReplyDeleteWhen the ecomony started tanking and foreclosures started happening - I did consult with my mortgage lender about loan modification and they kindly sent me a letter that basically said don't even think about asking for remodification as we are not doing it. Yet they received money from the government just for this issue. I owe much less on my home than it is worth and have over $70,000.00 in equity still, yet my bank won't budge, they would rather see me default than help.
ReplyDeleteWhat's that about? I am sure there are many out there that are experiencing tough times and need a break on their mortgages until the economy turns around. Not all the people who refinanaced their homes 2 years ago went over the value of their homes. It's not my mortgage that is killing me it's the insurance. Real estate prices dropped but insurance rates didn't.
When I look at all the property in my neighbor hood sitting empty and becoming a blight. I can not help but wonder what are the banks thinking?
Do they really get their value back after a home has sat empty for months and falls into disrepair? And are there really that many pre approved buyers to snap of these deals? I think not and these properties will fall to waste.
Hopefully the government will not take these properties (toxic debt) from them as they suggest unless they can show they worked with the homeowners first before foreclosing. It's a lawyers holiday out there - they are the only one's profitting now.