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BigRedChief
07-10-2008, 02:11 PM
http://biz.yahoo.com/ap/080710/foreclosure_rates.html?.&.pf=loans

US foreclosure filings surge 53 percent in June
Thursday July 10, 10:36 am ET
By Alan Zibel, AP Business Writer <TABLE height=4 cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD height=4></TD></TR></TBODY></TABLE>Foreclosure filings continue to rise as US housing crisis drags on


WASHINGTON (AP) -- The number of homeowners stung by the rout in the U.S. housing market jumped last month as foreclosure filings grew by more than 50 percent compared with June a year ago, according to data released Thursday.


Nationwide, 252,363 homes received at least one foreclosure-related notice in June, up 53 percent from the same month last year, but down 3 percent from May, RealtyTrac Inc. said. One in every 501 U.S. households received a foreclosure filing last month.

Foreclosure filings increased from a year earlier in all but 11 states. Nevada, California, Arizona, Florida and Michigan continued to have the highest foreclosure rates.

Irvine, Calif.-based RealtyTrac monitors default notices, auction sale notices and bank repossessions. More than 71,000 properties were repossessed by lenders nationwide in June, the company said.

While foreclosures continue to rise nationwide, efforts in some states to give borrowers more time before losing their homes appear to be working.
In Maryland, where a new law has increased the time to finalize a foreclosure to 150 days from just 15, foreclosure filings dropped by almost 18 percent from last year's levels. In Massachusetts, which last year passed a similar law, filings dropped almost 3 percent.

Still, the combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy has left financially strapped homeowners with few options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't refinance into an affordable loan.
Economists project 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007.

Analysts say the mortgage industry's effort to assist troubled borrowers is being overwhelmed by the magnitude of the foreclosure crisis, and Treasury Secretary Henry Paulson said earlier this week that many foreclosures are "not preventable," citing borrowers who "took out mortgages they can't possibly afford and they will lose their homes."

Lawmakers and government officials have been struggling to come up with a response to soften the blow for the U.S. economy. Congress is working on legislation that would permit the Federal Housing Administration to provide new, cheaper mortgages to distressed homeowners who otherwise would have difficulty refinancing into more secure government-insured loans. Lenders would have to be willing to take a substantial loss by reducing the amount owed on the loan.

The Bush administration announced Tuesday that it would be ready on Monday to implement an FHA expansion that lets borrowers who've fallen behind on their home payments -- because of mortgage rate resets or other economic hardships -- get more affordable loans.

In the RealtyTrac report, metropolitan areas in California and Florida accounted for nine of the top 10 areas with the highest rate of foreclosure for the third-straight month. That list was led by three California cities: Stockton, Merced and Modesto. The Cape Coral-Fort Myers area in Florida was fourth.

In Nevada, one in every 122 households received a foreclosure-related notice last month, more than four times the national rate.
In today's market, about 50 to 60 percent of borrowers nationally who receive foreclosure filings are now likely to lose their homes, said Rick Sharga, RealtyTrac's vice president of marketing, compared with a typical rate of about 40 percent.
"For more and more homeowners who are getting into foreclosure," Sharga said, "there is a much higher likelihood that they are ultimately going to lose the properties to the bank."

beavis
07-10-2008, 02:12 PM
Just had lunch with a guy to see about possibly buying a foreclosure... Great time to be a buyer if you have the money right now.

eazyb81
07-10-2008, 02:14 PM
Curious heading, considering foreclosures are down 3% from the previous month, which is a good sign.

luv
07-10-2008, 02:15 PM
People wanting what they can't afford. Actually, I guess it would be people buying what they can't afford.

With everyone doing their mortgages online, it's like they don't feel accountable. Pretty hard to hold yourself accountable to a company you've never actually been to or met any of their employees.

BigRedChief
07-10-2008, 02:19 PM
Curious heading, considering foreclosures are down 3% from the previous month, which is a good sign.
Not my heading. Yahoo's.

beavis
07-10-2008, 02:34 PM
Curious heading, considering foreclosures are down 3% from the previous month, which is a good sign.

That's a drop in the bucket.

ChiefsFanatic
07-10-2008, 02:37 PM
People wanting what they can't afford. Actually, I guess it would be people buying what they can't afford.

With everyone doing their mortgages online, it's like they don't feel accountable. Pretty hard to hold yourself accountable to a company you've never actually been to or met any of their employees.

Or some slimy mortgage broker talked them in an ARM.

Chief Henry
07-10-2008, 02:59 PM
Or some slimy mortgage broker talked them in an ARM.

If people buying homes with ARMS don't know the consiquences associated with them, then they deserve what they get. Its pure stupidity. Buyer beware.

Simply Red
07-10-2008, 03:01 PM
Just had lunch with a guy to see about possibly buying a foreclosure... Great time to be a buyer if you have the money right now.

closing on the 29th

Hog Farmer
07-10-2008, 03:15 PM
I have 17 mortgages on rental property. 5 of them hit the five year arm and moved up last year to 8 to 8.25 % rates. After rates came back down I went in to my lender and asked him about refinancing those propertys. He said he could just reset the rates for me at current levels which brought them back to 6.25. Didn't cost me a dime. I have a great relationship with this bank. I don't understand why more banks are not doing this. They don't want posession of those properties.

jidar
07-10-2008, 03:25 PM
If people buying homes with ARMS don't know the consiquences associated with them, then they deserve what they get. Its pure stupidity. Buyer beware.

Scenario: You're buying your first home. You go in, to buy a house and say "what can I get" and your banker says "you can get X" and it's a surprisingly big number to you. Wow how much is that payment? "Y". And it's a surprisingly small number to you.

So you buy the house.

That's exactly what happens in most of these cases. I bought a house 4 years ago and didn't even know what an ARM was, the banker worked up the paper work and I said "This doesn't have any kind of balloon payment does it?". Turned out it did, and was an ARM, and the only reason I even asked was my mom warned me about the baloon payment years prior. I had them rework it and the payment went up, but it was worth it. At no point was I ever offered any information about it other than being handed a huge contract that I just assumed was the "buy a house" contract that everyone signs. I glanced at it, didn't understand it, assumed everyone had the same thing, and I would have signed right there if not for my question.

I'm not an idiot, I'm a smart guy, and they very easily could have put me in that, so I'm not going to go around being high and mighty and judging people for this.

Stewie
07-10-2008, 03:34 PM
Curious heading, considering foreclosures are down 3% from the previous month, which is a good sign.

There are 3.33% fewer days in June than in May.

CrazyPhuD
07-10-2008, 03:35 PM
Just had lunch with a guy to see about possibly buying a foreclosure... Great time to be a buyer if you have the money right now.

Unless you live in an area that still has a good deal bit to fall.

CrazyPhuD
07-10-2008, 03:37 PM
I have 17 mortgages on rental property. 5 of them hit the five year arm and moved up last year to 8 to 8.25 % rates. After rates came back down I went in to my lender and asked him about refinancing those propertys. He said he could just reset the rates for me at current levels which brought them back to 6.25. Didn't cost me a dime. I have a great relationship with this bank. I don't understand why more banks are not doing this. They don't want posession of those properties.

Truth is alot of banks only originated the loans and then sold them as a package to investors. This means they can't just adjust the rates unless they get approval from the investors. Sounds like you have a traditional bank(and likely a good one). A rare thing these days.

Stewie
07-10-2008, 03:39 PM
The next time for most ARMs to reset is September. Give the market at least another year to bottom out after that.

Earthling
07-10-2008, 03:41 PM
What is interesting and also puzzeling to me is that this housing crisis with the foreclosures isn't confined to the USA. I like to read news from the UK sometimes and went to a site from a local newspaper in London. It turns out the housing market in London is also having bad times. The worst since 1993. I was discussing this with my brother-in-law and he told me the same thing was occurring in Spain. I found it strange and wondered if this could be coincidental, which I doubt. But what the implications are..?? I have no idea.

RedNeckRaider
07-10-2008, 03:45 PM
I work with a kid who has a house payment of $1.400.00 a month and he makes like $14.00 per hour. First off I have no clue how he lives on that to begin with, he has a wife and 3 kids. She works also but he said she only makes $ 8.00 per hour, take a sitter out of that.

Over the 4th his air conditioner went out. He comes back to work and tells me after paying to have it fixed he does not think he can make his house payment this month. The reason I tell this story is there are a lot of these people who brought this on themselfs.

Stewie
07-10-2008, 03:46 PM
What is interesting and also puzzeling to me is that this housing crisis with the foreclosures isn't confined to the USA. I like to read news from the UK sometimes and went to a site from a local newspaper in London. It turns out the housing market in London is also having bad times. The worst since 1993. I was discussing this with my brother-in-law and he told me the same thing was occurring in Spain. I found it strange and wondered if this could be coicindental, which I doubt. But what the implications are..?? I have no idea.

The British banks were as dumb as the U.S. banks. Their real estate bubble was bigger and caused the collapse of Northern Rock. Northern Rock was bailed out by the gov't, so all is well. :rolleyes:

Hog Farmer
07-10-2008, 03:48 PM
The next time for most ARMs to reset is September. Give the market at least another year to bottom out after that.


ARMs reset at a time tied to when you took out your mortgage. If you took out a 15 year mortgage in January of 2005 that has a 5 year ARM then it would reset in January of 2010 at whatever the current rate is.

CrazyPhuD
07-10-2008, 03:50 PM
Well around here when prices were going up like crazy there was some panic buying with people who thought 'if I don't buy now I'll never be able to afford a house'. Unfortunately they are now left holding the bag.

If you want a better case to improve our math standards in this country I don't know a better one.

Earthling
07-10-2008, 03:55 PM
The British banks were as dumb as the U.S. banks. Their real estate bubble was bigger and caused the collapse of Northern Rock. Northern Rock was bailed out by the gov't, so all is well. :rolleyes:

Yep. Where I live at now, Grand Junction CO, there was a housing problem in the early 80's. Shell oil came in, to extract oil from the shale rock that abounds here, and prices went sky high. Then they left after determining that it was not profittable enough. The housing market tanked. People were in a position that they could sell their homes for say $100,000 but still owed $140,000 on it. People walked away from the loans and some banks went under. Thank God my house is all paid for now..(Last payment went out Jan. of this year) :thumb:

Stewie
07-10-2008, 03:56 PM
ARMs reset at a time tied to when you took out your mortgage. If you took out a 15 year mortgage in January of 2005 that has a 5 year ARM then it would reset in January of 2010 at whatever the current rate is.

I guess I should clarify. September is the next adjustment based on the bond market. The people with ARMs set to reset in Sept. will see the next jump in rates. They're at the front of the bus in the ARM reality check.

bogey
07-10-2008, 04:01 PM
People wanting what they can't afford. Actually, I guess it would be people buying what they can't afford.

With everyone doing their mortgages online, it's like they don't feel accountable. Pretty hard to hold yourself accountable to a company you've never actually been to or met any of their employees.

People not taking time to educate themselves.