The number of U.S. homes facing foreclosure surged 58 percent in the first six months of the year, the latest sign of mounting problems in the mortgage industry, a data firm said Monday.
In all, 573,397 properties across the nation reported some sort of foreclosure activity in the first half of this year, including receiving notices of default, auction sale notices or being repossessed by lenders.
“We could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65 percent,” said RealtyTrac CEO James J. Saccacio.
In the RealtyTrac report, California led the nation in foreclosure filings and the number of homes receiving notices.
Ah, the Golden State is always in the lead.
$500 bucks says some $200,000,000 a year CEO whines to congress for a bail out.
Another $500 says we hear someone whining here that it is all Bush’s fault. We can’t blame the people who took out adjustable rate mortgages that put them in over their heads and then the rate adjusted. No, that just wouldn’t be right.
It’s all Bush’s fault – if the education system ensured that everyone understood basic maths there wouldn’t be so many people taking out adjustable rate mortgages!
There, you got your $500! 😉
#3 Thank you for confirming my faith in my fellow humans and for the laugh. (Okay, I’m assuming the human thing.)
On the other, one of the many things Bush has long been touting as signs of his economic policy success has been the high level of minority home ownership… heh, at least they used to own homes.
Hey! I saw on TV that you can buy a 2,500,000 house in California for only $700!!! of course it’s only 900 square feet and near a freeway!
this was pretty obviously in the making
I just bought a house. I can tell you that this is not at all surprising. A bank was going to give me an ass load of money for a loan even though when you add up all the bills per month, I wouldn’t have had enough casholla every month. I can easily see people taking the money without thinking ahead.
This is all due to an unholy alliance between shady mortgage brokers and investors. They both saw and ooportunity to make cash and ran with it.
The brokers lying on forms to assist investors who largely were buying homes like children at a penny candy counter. Many of these homes were not even written in stone before the investors tried to flip and re-sell.
And they wonder why things have gone sour when the market re-adjusted to what SHOULD be normal for sales?
Let them go under I say. They deserved every bit of it for their avarice.
Cursor_
Predatory lending and stupid buyers. I’ll wait for the “industry bailout” that will come later, with full congressional support and paid for by the U.S. taxpayer.
#7 – sdf – this was pretty obviously in the making
Absolutely. It’s an long overdue adjustment of the market.
What this situation points out more than anything is how wide the gap in this nation as become between rich and poor, when the only path to home ownership for millions of working Americans is risky loans such as these.
In the last 7 years??
cost of wood has gone up, because we sell ALL of the USA supply to China, to pay back loans?? thats ALOT of wood.
Then we import from Canada, and someone installed a 25% import tax, to pay for the War? or to pay for congress?
Loan rates are WEIRD…I remember when they were Prime + 9, and now they are Over Prime +14…
10 correct…Bailout of all loans…
so WHY NOT….Charge everything you can, and DUMP the cards, and cripple the banking system TOTALLY.
#12 Amen to that. My best friend’s dad raised four kids pumping gas in Oregon. I kid you not. They had to scrimp and save, but they did it, and his wife stayed home raising the kids. Think that could be done today? I think not. Blame those who’ve pushed cheap labor, crushed unions, looked the other way with illegal immigration, and not looked out for their own countrymen.
I don’t support a bailout. If we bail out the investors this time it will happen all over again.
This is all the result of hedge funds that buy outstanding debt from lenders who then have the money to make more loans. Hedge funds cant buy debt now, so credit dries up, houses dont sell and start dropping in price, while interest on adjustable/interest only loans goes up.
People start owing more than their house is worth, so they default and hand the bank the keys.
You had to wonder where the sudden housing boom came from, now it’s abundantly clear it was people who couldn’t afford their mortgages but were given loans anyway. I’m really just crying my eyes out for those subprime lenders going bankrupt. If there is some sort of bail out I’m officially moving to Canada D:
Okay so the rate is up 58% and 573,397 properties have “some sort of foreclosure activity”. But out of how many total mortgages? I suspect that there are at least 100,000,000 mortgages out there if not more. 576,397 is 0.5%. Big deal.
it all boils down to people wanting bigger and bigger houses. The McMansion is seen as “necessary”.
This all reminds me of a guy I knew years ago who’s family lost their house in the previous housing bubble back in the later 1980’s.
Their house was worth about 1/2 of what their mortgage was after the bubble burst. They turned in the keys to the bank, declaired bankruptcy and walked.
Fast forward 20 years and look what’s happening…
Same thing.
Those who don’t learn from history are doomed to repeat it.
#14 “My best friend’s dad raised four kids pumping gas in Oregon.”
On a recent trip through Oregon (as fast as I could go), I helped pay for some guy’s college fund for his kids. In order to artificially boost employment rates, Oregon law does not allow the customer to pump gas. Consequently, most stations close early. Good luck if you’re driving through the night!
#17 – not certain if you’re ignorant or uneducated; but, pretending to compare an annual rate to the sum of all mortgages is absurd.
Height of the bubble = 1.4 million new homes/year. Even if 2nd hand homes were equal, that’s less than 3 million mortgages/year.
The figure you probably were stretching for – unsuccessfully – is that 1 of every 134 households in America will likely hit foreclosure this year. That’s unrelated to what year the mortgage loans were made.
18, NOT…
These are speculators, that are building homes to RENT…
At $600-1000 per unit, at about a 30×30 size for 3-4 persons.
they CANT rent them at this price, or Renters are not paying…
I think house prices are way too inflated especially in bay area form .com boom crappy 150K 3 bedroom homes with barely got any kind of back yard are selling for 600K.
I’m in NH now and where I live there are new communities being build but nothing is economy they’re all over 300K and up. People from Mass buy them as summer home they don’t even negotiate the price.
#2, Steve, your an idiot. Yeah blame the people here.
Shit, given most (if not all) people can’t understand their credit card contract, because of deliberate corporate obfuscation; what makes you think these people where told the truth by their lender?
Ok, people in general aren’t the brightest, but; when corporations deliberately mislead people, investors and regulators you get a systematic mess that we have now.
Fix the banking system, don’t blame the public. Everyone will benefit.
23,
I’d rather USE those credit cards to the MAX, then DUMP them…
Kill the banking system, that has been created…FRY them with there OWN weapon..
22, you should come here…For 300K you could buy/design/ OWN a whole wall of the snake river canyon…
Thank you federal reserve.
#23 Ooh I’m an idiot?
Blame everyone except the responsible party. If someone is too stupid to notice that their monthly bills total up to more than their monthly income after a rate adjustment then it is their fault. Why blame the lending company because someone can’t add.?
I blame all those 4pt print forms in Latin/Japanese/Italian/Lebanese/…
that read like some person that NEVEr got out of school, and is trying to cover the bases….Ever read those Med letters you get with drugs, that tell you….”If you have anything wrong with you, DONT take this pill” Is for its size is about the length of a book, IF it was written in 10pt font??
How many EULA’s have you read in your life?? TO MANY..and many of the new ones HIDE the real thing, INSIDE all that text…
Ever TRY to read all the 4pt txt on the TV as it FLASHES past… TRy to even pause it, and see if you can read the stuff…
Make it BIG letters, make it 6th grade education level, and forget the This/thu/then ifs/and legalese AS400 ASM programming language…
I love it !!!! Morani !!!
Everyone is blaming the loan companies and borrowers. Sure, there are some bad apples on both sides of the fence. Most people having financial problems though are because of medical bills and the loss of well paying jobs. It isn’t because people are stupid that they get behind, it is because the bills got too big all of a sudden.
Maybe a lot of people here don’t understand, after Iraq and terrorism, medical care and the loss of well paying middle class jobs are the biggest concerns of Americans today. That is why so many are having financial problems.
28,
you got most of it…
corps taking money for CRAP… stuff they sell you for 1000 times profit.
People forgot how much POWER they have, to kill a store..
But corps have learned also…Why not close one store and open 10 others, to replace it.
If it dont work HERE, move it over THERE…
This country ISNt advancing…
they have LOTS of tech that hasnt been shown to the consumer…they want to PART it out and sell you 1/100th portions…
Even the advancements in the Current Intell chipset are 15+ years old, mostly. And we STILL havent ventured into Parrallel processing, BECAUSE MS dont know HOW..(look at the AMIGA, and BeOS hardware).
You want things to CHANGE, STOP buying the CRAP..
Ever go to a store, and look at the DVD’s?? HOW many will play AVI? Or even a BURNED CD?? Or DIVX….Look online and you will find them…AND THEY ARNT EXPENCIVE…
So why in Hell would you buy anything ELSE?? Because thats ALL you see, in the stores….CRAP…
They probably paid $10 to sell it to YOU for $60+..
I have a Question for you techs…WHAT happened to ALL the TV plugins on TV?? They used to have LOTs of them, and it didnt cost much MORE….NOW, they charge you for EVERYTHING…
You breathe, $10 please…
The Democrats have the answer: raise taxes on those greedy working people and redistribute money to the dysfunctional needy. Hey! I thought slavery was unconstitutional? Hillary is telling people that if they don’t have health care it’s Bush’s fault. Raise taxes again to pay for more benefits for dysfunctional “can’t work” people? Who’s meanspirited? People are just hanging on. I guess we’ll see a lot more foreclosures in Hillary’s future.