Foreclosures Soar 76 Percent to Record 1.35 Million
source: http://www.truthout.org/120608Y
-
-
- wlwatkins
- added this
http://www.truthout.org/120608Y
If i were owner of a bank, I think I would foreclose on most loans, because eventually they govt will purchase these bad debts and I then will reloan with a higher interest rate,,,,,shouldn't the banks have freeze placed on them?........................................................................................
Two women facing foreclosure attend a protest. (Photo: Getty images)
Foreclosure rate hits nearly 3% in the third quarter, while another 7% of borrowers fell behind on their mortgages.
New York - A record 1.35 million homes were in foreclosure in the third quarter, driving the foreclosure rate up to 2.97%, the Mortgage Bankers Association said Friday.
That's a 76% increase from a year ago, according to the group's National Delinquency Survey.
At the same time, the number of homeowners falling behind on their mortgages rose to a record 6.99%, up from 5.59% a year ago, the association said.
cont....
This means that one in 10 borrowers in America are either delinquent or in foreclosure.
Many of those troubled borrowers are in California and Florida, which have among the highest delinquency rates in the nation.
The weakened economy and mounting job losses are expected to push these numbers even higher. And that will likely affect homeowners with prime, fixed-rate mortgages, which make up the vast majority of loans and have so far held up fairly well. Until now, much of the housing market's problems were concentrated in the subprime, adjustable-rate market, where homeowners with weak financial backgrounds got loans they ultimately couldn't afford.
"We have not gone into past recessions with the housing market as weak as it is now, so it is likely that a much higher percentage of delinquencies caused by job losses will go to foreclosure than we have seen in the past," said Jay Brinkmann, MBA's chief economist.
Unemployment soared to 6.7% as payrolls shrunk 533,000 in November, the Bureau of Labor Statistics said Friday. It was the largest monthly job loss in 34 years, and brought the year's total job losses to 1.9 million.
The number of homes going into foreclosure in 2008 is on track to hit 2.2 million, Brinkmann said.
Modification Efforts Evident
cont......
-
- groups:
- Community, News and Politics, Green, World News, 3 more
-
- tags:
- News, News and Politics, Green, World News, 10 more
-
-
DwinD
-
Yes, this is a depression, created by greed and a sense of entitlement. The unemployment numbers are skewed and it is likely that all the figures that come from not only our government, but also many corporations paint a completely inaccurate picture.
Had the government simply forced the banks to negotiate with these people, lower interest rates and re-negotiate payment terms this would likely cut the current numbers drastically. In fact if one took the time to do the math on the recent banking bail out one would stagger if the number were simply divided by the entire population of the United States. We all could have bought houses: most far better than what we currently have! Considering that the total population includes every man, woman and child should be perspective changing indeed. Does anybody crunch these numbers? Where is the accountability??? - 4 years ago
-
DwinD
-
-
Ish05
-
So this is not a depression? When the people finally admit that this is not a recession but more like a depression it will have been old news.
- 4 years ago
-
Ish05
-
-
kennymotown
-
Since the jury rigging of these numbers for figuring unemployment several years ago the true numbers are running anywhere from 11% to 13% true unemployment. As for foreclosures the true price of housing should drop another 20% before bottom of the housing market finally gets here. In some areas that haven't experienced the deflation of housing it's coming and once the crunch of these ridiculous prices
comes then people will be ready to buy again. - 4 years ago
-
kennymotown
-
-
wlwatkins
-
On Friday, the Department of Labor released a report showing the economy shed 533,000 jobs in November -- the largest monthly job loss since December 1974. For the year, job losses now stand at 1.9 million.
The unemployment rate rose to 6.7 percent in November, up from 6.5 percent in October. It is the highest unemployment rate since October 1993.
- 4 years ago
-
wlwatkins
