Foreclosure Filings Up 53% From Last Year

More Than A 250,000 Homes Got A Foreclosure Notice In June; Slightly Better Than May

(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."

[nskduke2]

Bush is not to blame for these foreclosures. If anyone blames Bush for this, they truly are an idiot. The lenders and the stupid people that bought into this idea are to blame.Bush has nothing to do with stupid people making poor decisions. Personally I think the government shouldn''t help bail out people stuck in these mess.A life lesson must be learned here.

[freddawright]

We dont blame Bush for this, we blame any of you dummies that voted for him TWICE!!!!
www.theseriouspolice.com

[rhs648]

Greed is the only problem here. Just good old fashioned greed.

Posted by tejasdemo

You are correct. Greed on the part of mortgage companies, banks, investment companies, appraisers, lawyers, and homeowners all contributed to our problems. Everyone threw caution to the wind and now we suffer with the results. Billions of dollars were made by these people. It would be great if the law went after the money these people received.

[tejasdemo]

Greed is the only problem here. Just good old fashioned greed.

[ramos937]

People...people...people. Did you not take heed of Phil Gram''s, Chairman of McCain''s Presidential campaign, announcement. Phil, an Economist, Vice Chair of an investment bank but on leave, a past Senator with vast government experience, announced yesterday that these foreclosures as not real. They are in your mind. Please pay heed to the voice of experience.

[mcvet]

So YOU think this is because of the Price of Gas?? You think people will buy Gas instead of paying the house payment? You don''t think the LOANS that gained in Cost more than double in most cases caused this.. you know loans the Regulations on Fair Lending and Bankruptcy the Republican''s removed allowed?? Sieg Heil Bush

[rhs648]

Wow, is this suppose to be shocking news? What did you think was going to happen when gas hit $4 a gallon?

Posted by shanev137

It is almost like Americans are asleep at the helm. The world has changed. Third world countries are beginning to enjoy manufacturing and trade and compete with us and Europe for oil. There is an automobile company in India that is producing $2500 automobiles for millions of people who live in third world countries. The competition for oil and other natural resources has only begun. While we want people in other countries to live better, it has a direct impact on us. As China and India demand more fuel, we can expect prices to climb higher. As long as we refuse to drill for our own oil, it will remain in short supply for many years. Alternative energy is great, but will not be produced soon enough to get us out of our mess.

[omega39-2009]

Paul Craig Roberts - A workforce betrayed

http://www.vdare.com/roberts/080709_economy.htm

[shanev137]

Wow, is this suppose to be shocking news? What did you think was going to happen when gas hit $4 a gallon?

[rhs648]

As president bush could have changed or stopped the free trade, he has been in office for 8 years, that is plenty of time to change that, he took full advantage of it and the middle class working families of this country are paying the price, while bush and his oil buddies rake in record profits.

Posted by armydog2

Hi armydog2 - It would not be practical to try to reverse trade with China. The horse has already left the barn. The best we could hope for is fair and equitable trade between us and any other country we trade with. Sadly, China will sell us anything but restricts what we can sell in China. Trade agreements are made between Congress and other countries. If we want to restrict trade with other countries, it is up to the American people to pressure congress. Change is unlikely because consumers prefer lower prices even if it hurts some workers.

[armydog2]

As president bush could have changed or stopped the free trade, he has been in office for 8 years, that is plenty of time to change that, he took full advantage of it and the middle class working families of this country are paying the price, while bush and his oil buddies rake in record profits.

[rgrxx175]

McCain Dismissed Concerns on Mortgage Crisis and Economy. While campaigning in Florida, McCain dismissed concerns about the economy. %u201CEven if the economy is the, quote, No. 1 issue, the real issue will remain America%u2019s security,%u201D McCain said. %u201CAnd if they choose to say, Look, I do not need this guy because he''s not as good on home loan mortgages or whatever it is, I understand about that, I will accept that verdict. I am running because of the transcendental challenge of the 21st century, which is radical Islamic extremism.%u201D

[rhs648]

predatory lending practices, people just wanting the American dream that has turned into the American nightmare. Bail the banks out and f-u-c-k the common man, that is bush''''s deal. Could the extreme rising prices of oil that trickles down to raise the prices of everything be part of the problem. The rising unemployment rates because of employers leaving the good ole USA for cheaper labor and don''''t forget all those tax incentives they get be part of the problem.It all goes back to the domestic and foreign policies of the bush administration, free trade gone amuck and we the people are paying the price dearly.

Posted by armydog2

The problem with your statement is that all of this started under President Clinton when he gave us the largest taxe increase in history and opened trade with China. We did not feel the tax pinch because we were paying very low prices for Chinese made goods. Fuirther, the Clinton Administration told banks that they must find ways to expand home ownership. There is no advantage to a president to have a lousy economy. George Bush senior lost reelection in large part because of a recession. All presidents must deal with the cards they are dealt. A quick way out of this mess would be large tax increases and large government spending. Is this the path you want our government to take? It will be happy to do it.

[element51]

rhs648....Right you are. We worked hard and saved as much as we could, got our home paid off and thought we were ready to retire. I can''t tell you how many times over the years we wanted to buy something but didn''t because we decided we could do without it. No vacations, fancy cars, expensive furniture or expensive clothes. Now here we are. We have some savings but the interest is 1 and 1/2%. Much less than inflation. If we pull our money out and put it in high risk investments we could make more but we could also lose everything we have. Now the cost of gas, food and utilities has gone up so much that my social security chack doesn''t cover our monthly expenses. If I go back to work, at my age, I would be lucky to be a greeter at WalMart plus I would lose my social security. I''ve reached the point where I''ll call McCain "YOUR MAJESTY" if the cons will just leave me enough to live on. According to most of the posters on these boards Obama, if elected, will bring his fellow muslims over here in boatloads to execute all of us. What''s a person to do?

[forthepeopl1]

ITS ALL OUR FAULTS FOR LETTING BANKS AND CREDIC UNIONS KEEP OUR MONEY IN SAVEINGS AND IRA, AND CD''S GETTING 1 TO 2 PERCENT WHILE LENDING OUT OUR MONEY FOR 10 15 20 PERCENT..WHO IS FING WHO.

ALL AMERICANS NEED S TO TAKE OUT ALL MONEY OUT OF BANKS AND WALL STREET AND SEE WHAT WILL HAPPEN..

THIS IS THE ONLY WAY TO SAVE AMERICANS MONEY.. THINK ABOUT IT..

THEY WOULD HAVE TO DO SOMETHING ABOUT IT.

I THINK EVERYONE SHOULD RACK UP ALL CREDIC CARDS TO THE MAX AND THEN FILE BANKRUPY..ALL THE BIG BANKS ARE DOING IT. SO WHY NOT US..F THIS GOVENRMNT.

[armydog2]

predatory lending practices, people just wanting the American dream that has turned into the American nightmare. Bail the banks out and f-u-c-k the common man, that is bush''s deal. Could the extreme rising prices of oil that trickles down to raise the prices of everything be part of the problem. The rising unemployment rates because of employers leaving the good ole USA for cheaper labor and don''t forget all those tax incentives they get be part of the problem.It all goes back to the domestic and foreign policies of the bush administration, free trade gone amuck and we the people are paying the price dearly.

[Gary Kempf]

Do you feel that Republican love "trickling down" yet?


--------------------------------------------------------------------------------

Posted by ibsteve2u

Is that what they call it? It looks and smells like sh*t to me. Maybe I should get my eyes and nose Checked?

[missingamerica]

Do you feel that Republican love "trickling down" yet?

[harpoot]

Well don''t that flip your grits

[hotpaulie]

rhs648 - Good point!!! That is exactly true!