Foreclosures Jump 57 Percent

Worsening Situation Comes Despite Ongoing Efforts To Help Borrowers Manage Payments

(AP)  The number of homes facing foreclosure jumped 57 percent in January compared to a year ago, with lenders increasingly forced to take possession of homes they couldn't unload at auctions, a mortgage research firm said Monday.

Nationwide, some 233,001 homes received at least one notice from lenders last month related to overdue payments, compared with 148,425 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc. Nearly half of the total involved first-time default notices.

The worsening situation came despite ongoing efforts by lenders to help borrowers manage their payments by modifying loan terms, working out long-term repayment plans and other actions

"You have more people going into default and a higher percentage of the properties going back to the banks," said Rick Sharga, RealtyTrac's vice president of marketing.

The U.S. foreclosure rate last month was one filing for every 534 homes.

The Cape Coral-Fort Myers area in Florida posted the highest foreclosure rate of any metro area in the nation, with one of every 86 homes in some stage of foreclosure, said RealtyTrac Inc.

Stockton, Calif., was ranked second, with one of every 97 homes involved in a foreclosure filing, while the Riverside-San Bernardino metro area in Southern California had the third-highest foreclosure rate with filings for one of every 101 properties.

January's tally represented an 8 percent hike from December.

RealtyTrac follows default notices, auction sale notices and bank repossessions. Lenders typically consider borrowers delinquent after they fall three months behind on mortgage payments.

Attempts to help struggling home owners have fallen short.

"The loan workout modification programs aren't having a significant material effect on keeping properties from going back to the banks," Sharga said.

One dramatic trend last month was a 90 percent spike in the number of properties that were repossessed by banks, compared to January 2007.

"It suggests that there's little or no equity in a lot of these homes, because they're not even being sold to investors at auctions, and it suggests a continuing weakness in a lot of markets in terms of real estate sales," Sharga said.

Falling home values and tighter lending standards have extended the housing slump, making it tougher for homeowners unable sell their homes or refinance when they face mortgage payments they can't afford.

A wave of adjustable rate mortgage resets expected in May and June threatens to push many other homeowners into default.

During the past year, 30 states saw an increase in the number of homes that had received at least one filing.

Nevada led the nation, with 6,087 properties receiving at least one filing, up 95 percent from a year earlier but down 45 percent from December, the firm said.

That translates to a rate of about one foreclosure for every 167 households.

Rounding out the top 10 states with the highest foreclosure rates were California, Florida, Arizona, Colorado, Massachusetts, Georgia, Connecticut, Ohio and Michigan.

California had 57,158 properties reporting at least one filing, the most of any state. The total increased 120 percent from a year ago and 7 percent from December.

Florida had 30,178 homes on the foreclosure track, up about 158 percent from a year earlier and down 3 percent versus December, RealtyTrac said.

[jwind11]

I have debated this moron jwind11 before - do yourself a favor and don''''t bother. He''''s going to try and twist and turn your words into a jumbled confusing mess, then he''''s going to argue with you that you said it. He has no intelligent point to make.

Posted by hungry1968 at 08:22 PM : Feb 26, 2008

translation: he will make you back up your posts, so best not post when he is around.

[myidoncbs]

facts6 makes a bunch of unwarrented ASSumptions when he says, "If we continue with entitlement consuming..."

"Entitlement consuming?" Do you have any idea what you are talking about? (No, you don''t.) You claim you can afford the house you live in, car you drive, etc. But what happens if you lose your job or get seriously ill? What happens when the cost of health insurance for your kids gets so high that you have to choose between paying your mortgage and taking care of your children''s health? What happens then is: you will become one of those "entitlement consumers" yourself!

The repug MYTH that all these forclosures are happening to stu.pid, greedy people is a LIE propagated by the criminals who have robbed this country blind.

[facts6]

I deserve a McMansion with a lap pool and a restored TR3 convertible in the circular drive. I live in a 500 sq ft house and drive a 15-yr old vehicle. Because that is what I can AFFORD. If we continue with entitlement consuming we will destroy our beloved country. What good is a luxurious home if you can''t sleep wondering how you will make the mortgage payment.

[shanev137]

The Democrats are going to have to clean up the mess.

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and will likely get blamed for it....because the clean up is going to hurt.

[poopusbuttus]

Rush Limbaugh loves his L-I-B Straw Man as much as you. He likes to say he could beat a LIB in an argument with his brain tied behind his back. Funny, he has never had a LIB guest on his show to prove it. Instead you can count on him arguing with his Straw Man day in and day out.



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Posted by curse914

Curse, you sound like an intelligent individual (specifically your knowledge about the housing crisis), however, since you''ve brought up the point about RUSH, let''s take a look at what you just stated.

Your statement is misleading. While I''m a recent listener or RUSH, and that he''s "physically" never had a lib on there to debate him on his show, he has offered at least 4 times to debate libs since I''ve been listening.

These are not just your avg libs to argue with, we are talking the offers have gone out to your "Top Dog" Senators, such as Harry Reid (the phoney soldiers puppet master), Nancy Spewlosi, etc....

Although RUSH does have an ego problem, his show is not geared for that type of format.

At any rate, your statement is not correct...partly, anyway.

[kaiyo4u]

No. We are reaping the "benefits" of greed by bankers, mortgage brokers, realtors, and home buyers. This has nothing to do with President Bush''''s economic policies. This type of thing can happen regardless of who is president. Many things happened under President Clinton, too. He could not be held responsible for everything that went wrong just as President Bush could not be held responsible for everything that goes wrong.

Posted by rhs648

Part of being a secure nation is also having economic stability.
Our government has failed us on this account more than once.
While it is greed that is the driving force of our current situation, it is our government who has relaxed the laws concerning credit and these are the repercussions of this laxness.
For those people in office are not there for their civic duty. They are there for power and money. They are motivated by greed just as all the other "entities" are (i.e. corporations).

It''s time we the people took responsibility for our government and take it back from the lobbyists, corporations, and special interests.
Our government has become such a sham and it is a shame that we have let it go down that road.

Our government should have no interest in business except to protect the consumer.

[pilgrimsway-2009]

In America today we have this knight in shinny armor coming towards us promising us deliverance! He never fought a battle, He was present when the other knights fought the battles, and keeps His armor very shinny. When He is with the other knights He speaks as one who fought battles, remember now He never did He was only present, that He can conquer lions and dragons and bring this land America to tranquility. The other knights ask Him of His experience and He just points to the fact that He has shinny armor. These other knights see His shinny armor and wonder why this so called knight calls Himself a knight. This knight in shinny armor states %u201CI can bring CHANGE%u201D. The people without experience in fighting the real battles on issues are transfix on His shinny armor that they do not bother with the issue that He has no experience. The people see this knight as their hope. They point to the other knight who is in charge for now and say this is the reason why we need a knight with shinny armor (with no experience) the knight who is there now had no experience either and we want another one like Him!!!!!!!!!!!

[rhs648]

We are finally reaping the ''''benefits'''' of Bush''''s failed economic policies. The fallout has only just begun. The Democrats are going to have to clean up the mess.

Posted by ontheleft

No. We are reaping the "benefits" of greed by bankers, mortgage brokers, realtors, and home buyers. This has nothing to do with President Bush''s economic policies. This type of thing can happen regardless of who is president. Many things happened under President Clinton, too. He could not be held responsible for everything that went wrong just as President Bush could not be held responsible for everything that goes wrong.

[pensacola88]

Here we go again!!! First, it was the ''80s with the S & L crisis where our government had to flip the bill to rescue depositors in the Savings and Loans who lent generously and financed land flip deals that eventually flopped leaving us to hold the bag!!

Now, the sub-prime lenders actively soaked the market with money and fueled a prosperous real estate market appreciation that popped like a over-inflated balloon!

The crisis is real!! Thousands of homeowners are becoming homeless each month! Most were lured in with promises that their 1-3 year fixed rate mortgage would be later replaced by a 30 year fixed rate low interest mortgage.

Talk about borrowers going upside down on a car loan!!

Now, we see borrowers going upside down on their home loans!!

What''s next? Are citizens going to go upside down on their social security benefit? their death benefit on their own life insurance? How hard does a person have to work and how much does a person have to pay to live and die without red numbers on their net worth?

[ontheleft]

We are finally reaping the ''benefits'' of Bush''s failed economic policies. The fallout has only just begun. The Democrats are going to have to clean up the mess.