U.S. Home Foreclosures Keep Rising

Number Of Filings In April Up 65 Percent From Previous Year

(AP)  More U.S. homeowners fell behind on mortgage payments last month, driving the number of homes facing foreclosure up 65 percent versus the same month last year and contributing to a deepening slide in home values, a research company said Tuesday.

Nationwide, 243,353 homes received at least one foreclosure-related filing in April, up 65 percent from 147,708 in the same month last year and up 4 percent since March, RealtyTrac Inc. said.

Nevada, Arizona, California and Florida were among the hardest hit states, with metropolitan areas in California and Florida accounting for nine of the top 10 areas with the highest rate of foreclosure, the company said.

Irvine, Calif.-based RealtyTrac monitors default notices, auction sale notices and bank repossessions.

One in every 519 U.S. households received a foreclosure filing in April. Foreclosure filings increased from a year earlier in all but eight states.

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 fewer options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't get refinanced into an affordable loan.

Efforts by government and the mortgage industry to stem the tide of foreclosures aren't keeping up with the rising number of troubled homeowners.

The April data show nearly half of the properties received an initial notice of default, suggesting many homes were new entrants to the foreclosure process.


"We're still sitting at roughly the same percentage of loans handled in any way successfully as we were a year ago, and the volume (of foreclosure filings) still keeps going up," said Rick Sharga, RealtyTrac's vice president of marketing. "It's apparent that what they've tried so far isn't working."

The U.S. House passed a bill last week that would offer government insurance on $300 billion in new mortgages to refinance loans for an estimated half-million borrowers facing foreclosure, particularly those who now owe more than their houses are worth because of declining values.

House lawmakers also passed a bill that would send $15 billion to states to buy and fix foreclosed homes.

Still, should the homeowner aid package clear the Senate, it faces a potential hurdle in the White House, which has threatened to veto the plan, arguing it's too risky and amounts to a lender bailout.

Even if a legislative compromise is reached, it could come too late for homeowners with adjustable-rate mortgages scheduled to reset to higher rates this month and the next.

More than 1 million home foreclosures are forecast for 2008.

"It doesn't look like the volume is going to slow down any time soon," Sharga said.

More than 54,500 properties were repossessed by lenders nationwide in April. In all, about 2 percent of U.S. households were in some stage of foreclosure during the month, RealtyTrac said.

Still, as foreclosed properties pile up, they add to the inventory of homes on the market and can drag down home prices. The impact is felt mostly in regions where foreclosures are concentrated, such as Southern California, the Las Vegas area, South Florida and parts of Arizona.

Nevada posted the worst foreclosure rate in the nation, with one in every 146 households receiving a foreclosure-related notice last month, nearly four times the national rate.

The number of properties with a filing jumped 95 percent versus April last year but declined 5 percent from March.

California had the most properties facing foreclosure at 64,683, an increase of 112 percent from April 2007. The number of properties declined less than 1 percent from March.

The state posted the second-highest foreclosure rate in the country, with one in every 204 households receiving a foreclosure-related notice.

California metro areas accounted for six of the 10 U.S. metropolitan areas with the highest foreclosure rates, led by Merced, with one in every 66 households receiving a foreclosure notice.

Arizona had the third-highest foreclosure rate, with one in every 224 households reporting a foreclosure filing in April. A total of 11,620 homes reported at least one filing, up nearly 181 percent from a year earlier and up 26 percent from the previous month.

Like Las Vegas and inland regions in California, areas of Arizona saw a sharp run-up in speculator-driven home prices and new home construction during the housing boom.

Florida had 35,264 homes reporting at least one foreclosure filing last month, a 146 percent jump from a year earlier and a 17 percent hike from March. That translates into a foreclosure rate of one in every 242 households, the fourth-highest in the nation.

The other states among the 10 with the highest foreclosure rates in April were Colorado, Maryland, Georgia, Ohio, Michigan and Massachusetts.

[Razzl]

The ratio of foreclosures to homes roughly mirrors the ratio of inmates to the population, so California can save some money by assigning each foreclosed home an inmate under house arrest to keep an eye on it and tidy the place up. Inmates charged with mortgage fraud get assigned to the smallest houses in the worst neighborhoods...

[noloyalisti]

This is what terrorists do, ruin the American way of life by outsourcing jobs, throwing people out of their homes, and giving all the money to their corporate masters. Oh yeah, and start wars of conquest for the oil corporations who run the government. Let''s vote for grampy mcBush and have more of the same.

[msay3]

So I guess the beleaguered home owner is totally blameless in this mortgage fiasco.....Come on, get real!!! People knew what they were getting into...the problem is that they were greedy...Wanted too much house for what they could afford, thought they could beat the odds, and now they face foreclosure....Oh well, get out the pitty potty!!!

[noloyalisti]

I think in the name of uniting against the real enemy which is Wall Street, we should not blame the victims. Just like you can''t blame the ignorant troops who sign up to die for the oil companies, you cannot blame homeowners who were sucked in by the conspiracy of the corporate run government.

Just look at how the normal American thinks about this country and our history. We have been a rogue terrorist state for a long time with our CIA overthrowing democratically elected governments and supporting right wing dictators. This is not taught in school so you have to teach yourself the truth. Not everyone has the time of the inclination, that is why they expect the government to control the corporate rapists and the military, not vice versa.

[drivelphobe]

The news just keeps getting better. Anyone who bought a home and is worried because the value has gone down, is deserving of adverse consequences because they bought it for the wrong reason, as an opportunistic investment. You buy a home to live in and the changing value should mean nothing. If it''s purchased as an investment, then the risk is there as with any investment. Let the scumbags who tried to get away with something go down in flames.

[msay3]

forthepeopl1: When buying a house there are key questions one should ask...
1. is the interest rate fixed?
2. is there a pre-payment penalty?
3. are there any balloon payments?
4. what is the whole monthly payment, i.e., principal, hazard insurance, homeowner''s insurance and property taxes. All of the above should be included in the home buyer''s budget. If you don''t like any of the answers, DON''T BUY!!!!

[msay3]

i am not paying my mortgage as long as Bush is president!!! that will show him

Posted by jamesm12341 at 05:01 PM : May 14, 2008

Now that''s really going to crush W, isn''t it? Do you think he cares?

[seafang]

Hey forthepeopl1, there''s a little rectangular button on the left side of your keyboard, just above the Shift key; Push it!

So these speculator dogs in the manger who bought houses just to stop someone else from being able to buy it; the flippers they call themsleves, are now facing problems. Well tough sh*t. You are the one who overpaid for the house; which you weren''t even going to live in and then you couldn''t make the payments. Well those are the breaks.

You were betting there was someone even dumber than you are, who was willing to pay even more for your overpriced house. Well there isn''t so you deserve what you got. And no, I am not interested in making your mortgage payment for you.
If it wasn''t for speculators like you, lots of decent people would be able to afford their own homes.

[stn_sage]

And Rising...And Rising...And Rising!

[forthepeopl1]

forthepeopl1: When buying a house there are key questions one should ask...
1. is the interest rate fixed?
2. is there a pre-payment penalty?
3. are there any balloon payments?
4. what is the whole monthly payment, i.e., principal, hazard insurance, homeowner''''s insurance and property taxes. All of the above should be included in the home buyer''''s budget. If you don''''t like any of the answers, DON''''T BUY!!!!

[forthepeopl1]

please this is a simple thing to fix, why are you bending over for all of the wallstreet scum.
you have the right to do what this paulson/ben did for wallstreet,saying they had to to save america. so you can say the same thing, but this time you would be saveing america, and not wallstreet.
you must come out and stop the forcloseing of all these millions of homes, now,
ALL YOU HAVE TO DO IS MANDATE THAT ALL MORTGAGES THAT HAVE BEEN TAKEN OUT FROM 2000 TO 2007 BY ALL AMERICANS TO BE RE-FI A.S.A.P. NO EXCEPTIONS,


NO MATTER WHAT THE CREDIT IS, THEY WILL RE-FI EVERYONE AT JUST OVER PRIME, AND AT A RATE OF 40% OF WHAT IS OWED ON THE PROPERTY( PERSONAL HOMES ONLY)!!
WHY, BECAUSE MOST HOST ARE SELLING AT FORCLOSER FOR 20 TO 30 CENTS ON THE DOLLAR, SO AS TO WHAT PAULSON SAID TO BEARSTEARN 2 DOLLARS IS BETTER THAN NO DOLLARS SO TAKE THE DEAL..NOW REMEMBER ALL OF YOU, IF THIS COMPANY IN 6 MONTHS LOST 98% OF THEIR VALUE FROM 700 BILLION TO WHAT IS IT NOW. AND FOR SOMEONE TO COME IN AND BUY IT FOR NOTHING, WHAT IS THE REAL VALUE OF ALL THESE HOMES???NOBODY KNOWS, SO WHY NOT JUST START OVER??? AND STOP THE BLEEDING FOR ALL AMERICANS.

[e-mail]
DAVID A BELANGER
FOR COMMON SENSE THIS IS SO EASY TO FIX DONT MAKE IT HARDER THAN IT IS PEOPLE.

AND LOOK AT THIS MORNINGS NEWS, THE GREAT POTATOHEAD PAULSON,AND BEN ARE IN TALKS WITH ANOTHER WALLSTREET FIRM GOING DOWN. MERRILL LYNCH
WHAT MORE BAILOUTS FOR WALLSTREET COMING

[msay3]

I don''''t think "greedy" is the right word. People buy houses 1) for a place to live and 2) as a symbol of their desired social level.
Posted by anon00 at 06:48 AM : May 15, 2008
---------------------------------------------------
I''m not saying that financial institutions should not take the heat for their deceptive practices; clearly, they are out for their profits as well. That is their bottom line.... What I am stressing, however, is that people need to take control of their own lives and destiny....Yes, they do need a place to live, but their "desired social level" may not necessarily be what they can actually afford.... As I posted in an earlier post, please note the following:

When buying a house there are key questions one should ask...
1. is the interest rate fixed?
2. is there a pre-payment penalty?
3. are there any balloon payments?
4. what is the whole monthly payment, i.e., principal, hazard insurance, homeowner''''''''s insurance and property taxes. All of the above should be included in the home buyer''''''''s budget. If you don''''''''t like any of the answers, DON''''''''T BUY!!!!

[msay3]

Oh, and I forgot to mention, anon00, life is all about choices...Good ones and bad ones....If you continually make choices that are bad for you, then you need a membership in the FUBAR club, because that''s what your life will be all about....

[msay3]

RIGHT ON!!!!, MAXIFY55

[naucoming4u]

So many people blame the home owners (former) from "buying more than they can afford".

That is absolutely ridiculous! The vast majority of people bought what they could afford....

...AT THE TIME THEY SIGNED THE PAPERS!

But what too many people fail to understand, on comment forums such as these (regarding home foreclosure subjects), is that there are many factors that cause a home to no longer be "affordable" to those who bought them.

1. Household income levels being reduced (via job cuts/lay-offs or wage reductions).

2. Living costs rising faster than expected, (gas, food, etc.)

Both of those reasons above cause a home to become less and less affordable until the breaking point where a middle-class family can no longer cut back on other living expenses. People have to eat. People have to drive to work, to school, to the grocery store, etc.

The biggest problem, that has never been addressed in the news or on these comment forums (to the best of my knowledge)...

...is that many home buyers do not plan for the worst case scenario. They use (unfortunately) blind optimism, feeling that they will be able to live in their house for as long as they want.

When making such a huge investment, ALWAYS use real-world pessimism to better anticipate the "what ifs".

There are A LOT of factors that have caused this current mortgage meltdown we are in. Lack of foresight/planning is definitely one of those factors.

[msay3]

NAUcoming4U: I repeat...It''s all about the choices you make....Ever hear of a "savings account"? Money put away for contingencies such as those you mentioned....If one doesn''t have extra money to save for emergencies because they have kids, and they live right up to the limit, then maybe they should rent for a while until such time that their finances are in better order. Hey! I wish I were a millionaire, but I''m not, so I won''t buy a house suited for one. I''d only be asking for trouble down the line...Thanks, but no thanks, I like to sleep at night.

[naucoming4u]

NAUcoming4U: I repeat...It''''s all about the choices you make....Ever hear of a "savings account"? Money put away for contingencies such as those you mentioned....If one doesn''''t have extra money to save for emergencies because they have kids, and they live right up to the limit, then maybe they should rent for a while until such time that their finances are in better order. Hey! I wish I were a millionaire, but I''''m not, so I won''''t buy a house suited for one. I''''d only be asking for trouble down the line...Thanks, but no thanks, I like to sleep at night.

Posted by msay3 at 01:51 PM : May 15, 2008
.............

SAVINGS?! WHAT SAVINGS!!!

That "savings" you speak of, mostly has all dried up within the middle class due to the costs of living that have greatly increased beyond inflation and well beyond the average wages. For those who have children, it''s an even worse situation!

And as far as your claim of... "the choices you make"... well, all I can say is where did you get your crystal ball?

[msay3]

NAUcoming4U: No crystal ball...just a little forethought.

[naucoming4u]

NAUcoming4U: No crystal ball...just a little forethought.

Posted by msay3 at 02:47 PM : May 15, 2008
...........

Forethought/foresight... just like I mentioned in a previous post. But that comes with looking at one''s situation from a pessimistic view, thus allowing savings to be a priority. But the reality is that the conditions of our "new economy" make it nearly impossible for the middle class to save these days.

This is why it takes two good incomes to be able to afford a house in the vast majority of regions in this country. But it''s only getting worse.

With the cost of gas, food, health care, and many other things going through the roof, people are getting farther and farther behind on their payments. Their savings (if any) was spent months if not years ago.

Take a survey and I''m sure over 90% of the respondents would say that they would like to save money for emergency purposes (the proverbial "rainy day"), but those same respondents would also say that it is nearly impossible to do so, (for the reasons I stated above).

[naucoming4u]

msay3:

So one might argue that the "choices" we make would also involve the career choices we make. Okay.

But that would mean every American would have to try to become engineers or doctors, (for example). Thus, forcing many people into careers that they are not fit to handle, or are not even remotely interested in being a part of. Plus, who would fix your car or your house or your computer? Who would cut your hair and serve and/or cook your food at the restaurant?

So many choices we have to make in our lives, but very few that can be clearly defined as "right and wrong", unless viewed only with 20/20 hindsight.

[msay3]

NAUcoming4U:defending your own life story???? Savings has always been a priority in my family..Consequently, we now own our home outright, have no outstanding debt, have a pretty good savings account and have raised four children and sent them to college. We also have three dogs and two birds, and two paid for cars. We didn''t get there by whining about everything...We worked hard for what we have and I make no excuses to anyone....Hardly a pessimistic view.

[msay3]

But that would mean every American would have to try to become engineers or doctors, (for example). Thus, forcing many people into careers that they are not fit to handle, or are not even remotely interested in being a part of. Plus, who would fix your car or your house or your computer? Who would cut your hair and serve and/or cook your food at the restaurant?
Posted by NAUcoming4U

Give me a break, OK? Nobody is forced to be a doctor or engineer if they don''t want to be...but by the same token they shouldn''t try to live like a doctor or engineer. People should live within their means and stop trying to be something they''re not!

[naucoming4u]

Posted by msay3 at 03:14 PM : May 15, 2008
...........

So based on your post above, you are probably in your 60s or higher. And that is fine, but you are clearly a world apart from the younger generations.

I am 33 myself, and what it takes for my generation to do what you have already done, is at least two incomes equalling over $100k (especially if there are ANY children involved). And that is NOT even beginning to live "comfortably". For the purpose of savings, one would have to live sparingly based on the income level I mentioned.

But as with so many of you older folks, you FAIL to see the challenges of the younger generations today, with or without a college degree. For example:

When you were in your 20s and 30s...

...Did your generation have to worry about a catastrophic health emergency causing you to go into bankruptcy? NO.

...Did your generation have health insurance premiums that surpassed your car payment (if any) or rent? NO.

I could go on, but I hope you get my point.

So I am not "defending my own life story"... I am defending the REALITY of millions of people in my generation.

[noloyalisti]

This whole discussion is great. It brings right into focus what conservative schemes started by Reagan and "improved" by Bush, Clinton and Bush have done to the American way of life. We have privatized entire industries which have led to loss of jobs, lower pay and lack of opportunity while heading back into the Gilded Age of robber barons (look at CEO pay).

We have not funded education and many other essential parts of our infrastructure and refuse to fund the government for its role of oversight. We followed Reagan''s mantra of borrowing to live beyond our means, both personally and as a country. Needless to say, we are all in deep doodoo and I really feel sorry for my kids and the generation before them (in their 30''s).

[msay3]

NAUcoming4U: Yes, I did have a catastrophic health emergency. My son was in an automobile accident, and the bills and subsequent funeral expenses far exceeded the car payments and rent as you put it. The challenges of the younger generation are not much different than the challenges of my own generation. The challenges of the next generation may be a little different in some ways from those of your current generation, but they will have them never the less. We too lived through a pretty bad recession, but we did make it through...Friends of ours were loosing theirhomes, had to sell off their possessions, etc. It was difficult to watch. We really struggled to keep our home, but because of our savings and willingness to work more than one job, we were able to hang on....I only tell you this because somehow I get the feeling that you think life was and is easy for us...Not true...we paid our dues. Life is pretty good now, but we worked hard for it. Some day you will be in your 60''s, and what you do now, today, will depend on what kind of life you will have in the future. You can''t go backwards and change things, but you sure in hell can look forward and plan for it. Lots of luck to you and yours, I''m signing off now.

[naucoming4u]

"You can''t go backwards and change things, but you sure in hell can look forward and plan for it. Lots of luck to you and yours..."

Posted by msay3 at 04:11 PM : May 15, 2008
..........

I agree with your post. My condolences for your son.

Thank you, and good day.

[forthepeopl1]

Posted by maxify55 at 01:02 PM : May 15, 2008,

let me see, oh ya- so who speculated more, wallstreet with billions of mortgages selling them to investors for more billions on false appraisels????? or someone like myself that was told 6 years ago the home i was bying for 280,000,and was appraised by three indpendent appraisel companys by all banks fighting to get my 830 becan score by the way, and they all came up with the same number 475000 to 500,000 so they said great buy, we thought to. and my rate by the way is fix at 3.75 for 30 years, beat that, but now we have to help my father-inlaw after loseing his wife for 50 yrs, he didn''t want to move in with us so we move in with him. now we have been trying to sell our home for the past 2 1/2 yrs, starting at 399,000,
now we are down to 299,000 and droping 20000 a week started this week, we owe 275000, and the appraisel has come back from 3 more appraiser for 125000 to 150000 in good times..so even us good americans are getting f/u/c/k/, i told them to just sell the home for what they can get, and our mortgage company will take the hit, i have ask them to re-fi the house for what its really worth, but they said f-you,so i will let them get f/u/c/k/. and i have never mist a payment, what a joke, this congress is, banks wont to help..right, show me one..

[sjc_1]

Republicans are playing with the same forces that brought us the Economic Depression of the 1930s. They brought us that one through the hands off policies of Coolidge and Hoover. It would be more than a shame to have to learn those lessons all over again. Once you crash a big economy it is VERY hard to get it started again. You have to borrow and we are already in too much debt as it is.