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article imageAmerican Foreclosures Increase by 65 Per cent in April Compared to Year Earlier

Posted May 14, 2008 by  Nikki W (karateblossom) in Business | 22 comments | 485 views
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A never ending story as people continue to lose their homes across the United States due to the plummeting economy. Compared to April of 2007, foreclosure rates for April of this year have increased by 65 percent.
The American dream of home ownership was made attainable several years back when the housing market boomed with incredible home prices and new construction provided an opportunity to so many who never imagined their dreams would be realized. Paired with the availability of home loans that seemed to craw out of holes like a pest control problem, and just about anyone could move into their dream home.

A California based company called RealtyTrac, Inc. has been monitoring default notices, repossessions and auction sales of real estate has provided updated information on just how quickly the dream bubble can be popped.

In one news report, nearly a quarter of a million homeowners across the country received at "least one" foreclosure filing in April, 2008. Last year, that number was just under 150,000. That is a 65 percent increase in foreclosures across America and a 4 per cent increase in just one month.

In February, 2008, the numbers had jumped up to 60 percent increase compared to the twelve months prior, with August of 2007 showing to be a peak month for foreclosures.

Of the states involved, Nevada, California, Arizona and Florida bring home the top four positions for having the highest number of foreclosures in the country.

Nevada holds the Gold, with 1 in every 1 in every 146 homes being foreclosed upon, California winning Silver at 1 in every 204 households and Arizona bringing home the Bronze at 1 in 224. If there were to be a Copper medal, it would go to Florida with 1 in 242 homes receiving a foreclosure notice.

California metro areas topped the list, occupying 6 of the top 10 spaces with 1 in 66 households receiving a foreclosure notice.

The national average is one in every 519 homes facing foreclosure, with the remaining 6 states of the top 10 being Colorado, Maryland, Georgia, Ohio, Michigan and Massachusetts.

Those rankings were similar when compared to the March, 2008 release.

If relief is being sought, some homeowners are optimistic about the US House passing the bill just last week that would offer government insurance on $300 US Billion on new mortgages to refinance loans facing foreclosure and another bill that would send $15 US Billion to states to buy and fix already foreclosed homes as an effort to provide some future relief and aid some damage already done.

It has to clear the senate and the White House has already threatened VETO, calling it a risky effort and claiming it “lender bailout”.

Reasons for the problems are said to be a combination of weak housing sales, falling home values, tighter mortgage lending criteria and a slowing U.S. economy. Homeowners are left with little or no options, as they cannot find buyers and cannot get refinanced, many owe more than their homes are worth and with the increase in prices of food and gas, the problems for homeowners have but a continued bleak outlook.

Nearly 55,000 homes were actually repossessed last month. A sad statistical analysis but a serious reality as far as where the country stands in terms of "dollars".
article:254693:12::0

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  • avatar Posted May 14, 2008 by  Lightening
    #1
    I think it is definitely going to get worse. The economy...and most importantly...jobs...decent jobs...are scarce. I know of many business owners and people who were making $75K minimum and much higher of course...that are seeing their business drop to near nothing.

    These people will be losing their homes soon because the only jobs available are maybe $25K - $35K per year. It is a steep drop from $200K and up per year.

    The U.S. jobs are way too heavy in the services industry and most was tied to the real estate boom.

    As far as I'm concerned....."The Sky is Falling!!" LOL! I'm laughing but its so not funny.
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #2
    Lightening,
    You aren't too far off that statement, hon. :-)
    We are all kind of like chicken little running across the street!!!!
  • avatar Posted May 14, 2008 by  Lightening
    #3
    @ Nikki W (karateblossom)
    Lightening,
    You aren't too far off that statement, hon. :-)
    We are all kind of like chicken little running across the street!!!!


    As they say..."It's a recession when your neighbor is out of work. It's a depression when you are the one out of work!"

    Its a depression for me.
  • avatar Posted May 14, 2008 by  Pamela Jean (GotTheScoop)
    #4
    Minnesota didn't even make the top 5 list, but I can tell you that there are tons and tons of vacant homes just sitting there. With the government plan to buy up these vacant homes - um, isn't that just putting the government in even more control?
    It is really frightening watching what is happening and seeing the trickle down effect as all the other industries tied to housing, which is the essential market that has kept this economy afloat, sink and drown.
    I have no clue when this will end, but I agree with Lightening, it is going to get worse before it gets better.
    Those few folks left that can actually afford to buy anything now feel that they should make offers of 20-30% off list price, pricing is already in the toilet,and the mindset of any buyers out there is driving values down even further. I had people this week that want to spend no more than $250K but want to look at homes priced at $350-400K so they can "get a good deal" - no one is dealing in reality anymore. It is just so bad............

    :-(
  • avatar Posted May 14, 2008 by  Lightening
    #5
    @ Pamela Jean (GotTheScoop)
    Minnesota didn't even make the top 5 list, but I can tell you that there are tons and tons of vacant homes just sitting there. With the government plan to buy up these vacant homes - um, isn't that just putting the government in even more control?
    :-(


    If you think about it....the government will either print more money (taxation through inflation) or increase our taxes so "they" can buy our homes. That gives the money and the control to the government.

    They are taking everything away. Next they will control all the food....and decide who eats and who dies.

    (There is violin music playing in the background...lol...)
  • avatar Posted May 14, 2008 by  Chris V. (cgull)
    #6
    Good Post and comments. It is a bloody mess, it is going to take an uphill task for the next government.
  • avatar Posted May 14, 2008 by  Carolyn E. Price (gohomelaker)
    #7
    I'm sorry, but I just don't get your headline...are foreclosures nearing 75% of all homes being listed? Or have foreclosures increased by nearly 75%? From what I could read in one of your links, it says that about 2 percent of U.S. households were in some stage of foreclosure during the month (of April). I honestly don't get where your 75% is coming into play.
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #8
    Carolyn-sorry for confusion. It means that over 1/2 of the people in the US who own a home are currently being foreclosed on (to incorrectly end a sentence w/ a preposition).
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #9
    Carolyn-sorry for confusion. It means that over 1/2 of the people in the US who own a home are currently being foreclosed on (to incorrectly end a sentence w/ a preposition).

    Since march, the foreclosure rates have risen 4%.
  • avatar Posted May 14, 2008 by  Samantha A. Torrence
    #10
    Nikki those numbers seem wierd.

    I mean I knew it was bad, but that bad?

    You know I got so mad when JP Morgan Chase had the audacity to say the foreclosure crisis is almost over, translated into our speak " We are almost done foreclosing on all our dead beats." The fact that the banks got bailed out and are now getting money to flip homes. I am about to take someone by the necktie and lead them around on that little choke chain so they can see the despair they have caused.

    This isn't even counting all the people who are falling behind and almost in foreclosure and I know a few who are in that situation.
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #11
    Pam, I'm sorry to hear that(not that ya'll didn't make list)! :(

    My husband and I were filed on for foreclosure and were clueless-we were 15 days behind on a payment and how we found out was through advertisements in our mail for foreclosure attorneys-they did not have to notify us by law.

    We had come into healthcare issue for one of the kids so had to temp pay deductible on that first and were making up-it sent us spiraling backwards.

    As economy started going down, we were struggling but found resolve....frightening situ.

    And u are right, those few who can afford right now want the big stuff at discount-of course, what's better, empty or sold @ discount?
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #12
    Samantha-weird numbers as far as the 1 in xxx? or %?
  • avatar Posted May 14, 2008 by  Samantha A. Torrence
    #13
    Nikki, what is better is if they restructure the loan to the discounted price and let the people who own it stay there and not foreclose. That is the better situation, but people are either too nasty or arrogant to concede that perhaps they are being asses.
    Sorry this gets me all riled up.

    wierd numbers as in percentage
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #14
    Thanks david! :)
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #15
    Sam, I agree and it gets me fired up as well.

    I think the 'zero tolerance' crap they used initially-lumping all into one really caused problems.

    Small adjustments to the loans might have saved millions!

    As far as %, The cnn report was for feb o7 -feb 08 and showed a 60% rise in homeowners who were foreclosed on. The nyt was from apr-april, @65% (headline changed).
  • avatar Posted May 14, 2008 by  Samantha A. Torrence
    #16
    It is bs. One woman I know missed one payment, one. And because she couldn't afford to make up the one payment ( but continued to make payment) they still foreclosed on her. One f*cking payment and now they are going to sit on her house, flip it, and sell it, all the while using the house as a tax write off. My ire at the sumbags at the bank right now is outrageous.


    On a more humorous note, my ire at McDonalds for gypping me fries today and receiving a nasty phone call is just funny. You do NOT mess with a pregnant woman craving french fries, it is like a sin.
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #17
    ROFLMAO! never mess w/ pregnant woman and her food!
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #18
    Carolyn-I did want to address your comment's final sentence in that my original headline term 'nearing' was taking into account that from feb to april, it had increased another 5%.

    DJ staffers reworded it so that it made sense to you and anyone else who was confused, and appropriately so.

    Thanks for bringing it to their attention.
  • avatar Posted May 14, 2008 by  Pamela Jean (GotTheScoop)
    #19
    @ Nikki W (karateblossom)
    Pam, I'm sorry to hear that(not that ya'll didn't make list)! :(

    My husband and I were filed on for foreclosure and were clueless-we were 15 days behind on a payment and how we found out was through advertisements in our mail for foreclosure attorneys-they did not have to notify us by law.

    We had come into healthcare issue for one of the kids so had to temp pay deductible on that first and were making up-it sent us spiraling backwards.

    As economy started going down, we were struggling but found resolve....frightening situ.

    And u are right, those few who can afford right now want the big stuff at discount-of course, what's better, empty or sold @ discount?

    That's a tough call because every homeowner that is staying current on their mortgages are going to end up being the BIG losers in the end if all of the homes in their neighborhood are being sold for 35-45% less than what they were valued at 4 years ago! If you bought a home in that time period and continue to stay current you'll owe way more than your home is worth - and who is to say when, if ever, you will recoup your losses? Empty homes all around are no better so you're screwed either way.......and I don't trust the government one iota. To let them start buying up homes and then deciding who is going to be able to buy them, or perhaps the government will turn them into rental properties to make up for all of the tax basis they are losing big time with the falling values and foreclosures - well, suddenly the government will be in charge of housing and rental rates and who of what race, nationality, economic status, etc etc etc will live where and for how much - well, it just doesn't sound good no matter what scenario you paint.
    Sam was DEAD ON when she said the banks should work with the people in the homes to reduce their value, rewrite their mortgages and help them to maintain their families and their way of life. If the government really gave a rats ass about the Sheepl, they would be looking for ways to keep the families in title instead of the government and rich investors cherry picking the cream of the crop of foreclosures to be had at bargain basement pricing!
  • avatar Posted May 14, 2008 by  Nikki W (karateblossom)
    #20
    pam-I agree 100%!
  • avatar Posted May 15, 2008 by  Nikki W (karateblossom)
    #21
    Update: I added the RealtyTrac reports for march and april to my article.
  • avatar Posted May 19, 2008 by  Carolyn E. Price (gohomelaker)
    #22
    I am just now getting back to this article (I really should subscribe to things that I comment on ... my bad!). I had absolutely no idea that the banks were foreclosing on someone for one missed payment or sending a notice of foreclosure for being 15-days late. That seems almost criminal to me! Sam and Pam were totally right, if someone is making the effort to keep up their payments, the bank should work with the individual ... one would think they would want the income generated from the interest on the mortgage rather than the tax write off or having the house sit on the market for months and months.

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