Home Foreclosures Up 121 Percent

One In 171 U.S. Households Received At Least One Foreclosure Notice In The 2nd Quarter

(CBS/ AP)  The number of households facing the foreclosure process more than doubled in the second quarter compared to a year ago, according to data released Friday.

Nationwide, 739,714 homes received at least one foreclosure-related notice during the quarter, or one in every 171 U.S. households, Irvine, Calif.-based RealtyTrac Inc. said. That's up 121 percent from the second quarter of 2007.

Soft housing sales, declining home values, tighter lending standards and a sluggish U.S. economy have left 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.

Foreclosure filings increased year-over-year in all but two states, North Dakota and Alaska.

Nevada, California, Arizona, and Florida continued to clock in the highest foreclosure rates. One in every 43 Nevada households received a filing during the quarter.

Cities in California and Florida accounted for 16 of the worst 20 metro foreclosure rates. Stockton, Calif., had the worst rate, with one in every 25 homes in the town receiving a foreclosure filing. That's nearly seven times the national average.

RealtyTrac monitors default notices, auction sale notices and bank repossessions. Banks took back more than 222,000 properties nationwide in the second quarter, the company said. Bank repossessions accounted for 30 percent of total foreclosure activity, up from 24 percent in the previous quarter.

Mark Zandi, chief economist at Moody's Economy.com, projects that by the end of next year, nearly 2.8 million U.S. households will either face foreclosure, turn over their homes to their lender or sell the properties for less than their mortgage's value.

The foreclosure report comes as the Senate is on track to pass a massive housing rescue bill by Saturday.

The bill is the most far-reaching rescue effort since the Great Depression - a $300 billion lifeline for homeowners facing foreclosure and their lenders, reports CBS News chief White House correspondent Jim Axelrod. The bill allows homeowners to get out of those killer adjustable rate mortgages and into new fixed-rate loans guaranteed by the government.

It's designed to keep an estimated 400,000 homeowners out of foreclosure and support troubled mortgage finance giants Fannie Mae and Freddie Mac.

The plan creates a new regulator and tighter controls on the government-sponsored mortgage firms and starts a permanent affordable housing program to be financed by their profits. That fund would be tapped to cover any government losses from the foreclosure rescue.

At a hearing Friday on Capitol Hill, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, reiterated threats to more closely regulate loan servicing companies if they don't modify more home loans to prevent foreclosures. Loan servicing companies, which collect mortgage payments and distribute them to investors, have been criticized by lawmakers and consumer advocates for not doing more to help troubled borrowers.

CBS' Radio's Bob Fuss reports members of Congress say they're getting a lot of complaints from homeowners who say they're unable to get help from their lenders to avoid foreclosures. James Barber of the American Bankers Association insisted they try hard to avoid foreclosure - but one complication is that banks often re-sell mortgage loans to others.

An executive at Bank of America testified some homeowners calling for help reach a call center in India. Rep. Frank said he believes banks want to help homeowners avoid foreclosure but need to make sure all their employees know that is the case, Fuss reports.

Shares of Fannie and Freddie tumbled Friday. Investors remain jittery about the two government-sponsored mortgage companies' ability to raise cash to protect against losses. Fannie's stock fell 74 cents, or 6.2 percent, to $11.28. Freddie shares fell 62 cents, or 7 percent, to $8.19.

[drivelphobe]

This is even better news. As a landlord, I can expect less vacancies and rent increases. Yummy!! Maybe I can purchase more property from some distressed seller.

[sparks224]

Hooray for Reaganomics! The tax cuts are working!

[bladdy10]

If you are one of these distressed homeowners I encourage you to take what money you have left and go. Don''t spend your very last cent on trying to keep a house the banks, mortgage companies and even our federal government has conspired to screw you out of. Let''s face facts. You are not going to get back up to what you bought the house for at least ten years. You will not be able to get loans or credit on something you own that''s worth less than you have to pay. The Banks WILL kick you out soon anyway. You''ve done everything right and still you are going to be homeless so isn''t it about time to smarten up and protect your family? The rich protect the rich so to hell with them. Go to The Benefactor Project and get out of this rat race and start protecting your family. Please don''t even consider suicide. There is honest help out there.

[ddaryl1]

Posted by drivelphobe at 12:50 PM : Jul 25, 2008

""""This is even better news. As a landlord, I can expect less vacancies and rent increases. Yummy!! Maybe I can purchase more property from some distressed seller. """"


Wow, this just warms th eheart. Who cares about the majority of people, just as long as a few get richer.
This mindset disgusts me. We see it in the stock market, and pretty much eveyrwhere in a capitalistic society. Screw helping your neighbor, screw trying to make the world a better place, lets just profit, because the world is a much better place when people pour more enrgy into accumulating wealth.

angry, sad, and disgusted

[kaiyo4u]

The American Dream: being sold out by the banks and our government to destitution.

[element51]

When we bought our house the first thing we did was to make sure that we could afford the payments. We then made sure that we had six months worth of payments put away in a safe account in case something happened. We also made sure we had a fixed rate so the only variable would be taxes. As a result we did not buy a fancy house. I used to wonder how people were affording the 250 to 300 thousand dollar houses as the median income in this area is 25 to 30 thousand a year. Now I know. We paid off our house two years ago so all we have now is taxes. The reality is that you NEVER can own your home..it belongs to the state, but it''s nice to not have a house payment to worry about. People need to stop and think before they commit themselves to something that just might blow up in their face. I''m sorry when someone loses their home but no body helped us with our payments and I don''t feel it is our responsibility to bail out people who didn''t do their homework.

[noloyalisti]

Kill the middle class. Mission Accomplished and the Surge is Working. Thank God for the conservatives.

Obama is our last good chance to save America, that''s for sure. He stands for change and a few (although not enough yet) progressive ideas.

[element51]

drivelphobe refers to himself as a "landlord". I always hated that term. No one is my "lord" and some of these folks who own rental property actually think they are "lords". One of our kids rented a house from this guy and he had that attitude. There was a carbon monoxide leak in the house and when he was asked to fix it he told the kids it was their problem and he didn''t care if it was fixed or not as long as he got his rent on time. They were locked into a lease so I had the leak fixed. We also stuck a couple of window air conditioners in for them since it was very hot and they had a 6 month old baby. When the lease was up and they were free to leave the "landlord" refused to let them take their air conditioners. We had to get a lawyer to get them back. He also kept their deposit although the house was spotless when they moved out. So I prefer the term "property owner". It''s also nice to know that there are people out there circling like vultures to take advantage of someone elses bad luck.

[sandzz-2009]

"I refuse to pay my mortgage as long as Bush in office

Posted by jamesm12341 at 01:01 PM : Jul 25, 2008
+ report abuse"

Great idea.

[jbright9]

We need new leadership in Washington. If we have another Republican President and not enough of a majority in Congress to do anything, we are doomed. Too many people do not understand that the Democrats have not had enough of a majority to do much of anything.

Government can only go so far in solving our problems. We must all work to protect our environment and live with less material things.

[trillion1]

Yes, there are alot of stupid people out there and deregulation let them be conned.

[inventagod2]

Life in bu$HAMErica....

[element51]

koko98....Your post is not moronic. James has a tendency to look at things from a neocon point of view. Yes, there were people who made bad choices and got in over their heads. But there are also people who have been victims of job loss, downsizeing, medical problems, outsourcing, insourcing and a host of other things. It is not always black and white. There is a lot of gray. And I get a little tired of the Obama is the devil stuff. How stupid can people be? Sorry you were insulted but you are NOT a moron.

[ubrew12]

"There''s a sucker born every minute"

Isn''t that the neocon motto?

[irliberal]

because the foreclosures have nothing to do with Bush, Obama or McCain. Its about people making poor choices. You just made a moronic post.

Posted by jamesm12341 at 02:25 PM

Oh, so you''re saying that wasting billions (that''s right, billions) of dollars a month on the Iraq/Afghanistan wars doesn''t have a *significant* impact on the overall health of the economy? Right?

The overall health of the economy isn''t affected by nearly eight years of almost total republican rule? Either making morally corrupt fiscal choices or blocking the proper choices of the democrats whose majority is so slim that it is a majority in name only. Right?

The health of the economy has nothing to do with the bush administration and their refusal to promote anything but our dependence on the oil barons of the middle east? Right?

Now *who* is the moron again?

The question is rhetorical. The answer is obvious.

The blame for ALL of this lies SOLELY in the hands of the bush administration, the necons, and the republican party as a whole. The American public KNOWS this, and the 937 lies told to get us to invade Iraq aren''t going to fly a second time. You''re traitors, criminals and thieves. Your time has come. You have got to go.

i make only 1500 a month, are you sure i can afford this 2000 a month payment?
yes, yes you can afford it. your''e qualified no matter what.
what''s this ARM thing?
what arm thing? oh that! no worries we got your back.
cool lets sign

[sistatee-2009]

McCain and Obama, both NAFTA lovers, think the solution is to send more jobs to China, Mexico and India. We are so TOTALLY screwed!

[redbds]

"I refuse to pay my mortgage as long as Bush in office

Posted by jamesm12341 at 01:01 PM : Jul 25, 2008

If you aren''t paying your mortgage then where is all of your welfare money going?

[irliberal]

If you aren''''t paying your mortgage then where is all of your welfare money going?

Posted by redbds at 02:59 PM

Would that be the republican welfare money from taxpayers given to banks?

I''m quite concerned about the welfare crisis we common people are going to have to pay for.

Apparently our tax dollars are going to bail out banks on a republican welfare program. I mean, it''s one thing to give a few bucks to a single woman with six kids. It''s quite another to bail out a wealthy corporation''s stockholders with taxpayer dollars.

I thought the republicans were against welfare? Apparently not when it comes to big corporations that make donations to their party.

Are you surprised? I''m not.

[txlakeside]

oh .... and the dergulation of the lending industry during the last 8 years did not do anything to compound the problem? No income verification loans and the Stuctured Investment Vehicles (SIV''s) that the Mortgage Brokers and lenders rolled sub-primes into had absolutly nothing to do with it? And the Homebulders that were lobbying Congress for less lenders oversite did not have any thing to do with it either. And raising the Fannie and Freddie mortage amounts to above $600,000 did not have nything to do with it as well!

The Repubs "less gov oversite" push has pushed this country into the brink of depression. From Enron to Countrywide less oversite has allowed the greedy SOB''s to rape us all and put our children into debt for decades to come!

[redbds]

Are you surprised? I''''m not.

Posted by IRLiberal at 03:00 PM : Jul 25, 2008

The bailout is being passed by the democratically controlled congress. If it was a uniquely republican idea it would already be dead in the congress. since it will be going to the President for signiture, that means that your liberal heros are on board with it. This bailout will help home owners that got in over their heads not just mortage companies. That is welfare which is a liberal platform. If it were up to me I would say if you got into a mortgage that you couldn''t afford and can''t get out of it then you should consider renting something back in the trailer park.

[txlakeside]

oh so you loser neocons make war, let your buddies have no bid contracts, let the banks lend to people with no income verification and you blame liberals for the mess the repubs have made of it all.

You really are a loser.

[irliberal]

Posted by txlakeside at 03:04 PM

BRINK of depression? Heh... That''s a little bit of denial right there. The Bush administration and the republicans have put the United States in to the next Great Depression. It''s going to take several years at least of responsible policy to BEGIN to get us out of it. Bush, Cheney and their administration deserve to be in iron shackles for the damage they have done.

Over SIX years of war. Civil rights breached by our commander in chief. Internationally recognized torture sanctioned by the White House. Two invaded and currently occupied countries. Hundreds of thousands dead, including OVER 4500 American soldiers. Billions of our tax dollars spent, and yes, are still being spent to this very moment.

Iraq, which had NOTHING to do with 9/11, is now an occupied country which will implode when we get out of it, whether that happens one, two, ten or five hundred years from now. A society that CHOOSES to be ruled by religion cannot become a democracy; it can only be a theocracy with voting cards.

Bin Laden still lives. The mastermind of 9/11 still walks free.

The one, simple word for this is: failure. No amount of deception, indignation or wailing by republicons can change these facts.

Failure of Bush. Failure of Cheney. Failure of the republicans.

Time for a change.

[irliberal]

The bailout is being passed by the democratically controlled congress.

Posted by redbds at 03:07 PM

Heh... more neocon deception. Let''s look at the cold hard reality of it, eh?

Senate:
49 republicans
49 democratics
2 independents
tiebreaking vote: republican vice president.

House:
200 Republicans
235 Democratics
288 amount of votes needed for republican presidential veto override.

Whose in control of the congress?

Oh, and thank YOU, republicons, for using the last eight years to destroy our military readiness by involving us in multiple front, pointless foreign wars, destroying the economy, and basically turning the USA into a world-wide laughingstock.

You morons aren''t patriots. You''re traitors. Time for you to go. Your time is over. You''re done.

Time for a change.

[redbds]

Time for a change.

Posted by IRLiberal at 03:09 PM : Jul 25, 2008


Are you finding it hard to stay on topic? Why is it when you liberal folks start loosing an arguement you start pointing to Iraq and bin Laden is still alive. Sounds like you are spewing democratic talking points.

[donevis-2009]

FYI - The legislation being pushed through the Senate for mortgage aid and protection includes a clause that all credit card transactions be reported to the IRS!!! Our privacy rights are being stolen by congress (Rep & Dems) sliding *** like this in important "quick hurry up and pass it" legislation. "God Speed USA"

[redbds]

good one redbds, but i was being sarcastic...trying to make point to these loser libs

Posted by jamesm12341 at 03:09 PM : Jul 25, 2008

Sorry. I had you mixed up with someone else for a minute. I got that after I went back and reread it.

[redbds]

FYI - The legislation being pushed through the Senate for mortgage aid and protection includes a clause that all credit card transactions be reported to the IRS!!! Our privacy rights are being stolen by congress (Rep & Dems) sliding *** like this in important "quick hurry up and pass it" legislation. "God Speed USA"

Posted by donevis at 03:13 PM : Jul 25, 2008

don''t tell me that you believe everything you see on the internet. That is absolutely absurd. Besides the IRS is way too busy trying to collect money from deadbeats that don''t want to pay their taxes they have nothing to do with credit card transactions. Besides that information is already readily available to anybody that wants it. All they have to do is pay your credit card company for it.

[irliberal]

Are you finding it hard to stay on topic? Why is it when you liberal folks start loosing an arguement you start pointing to Iraq and bin Laden is still alive. Sounds like you are spewing democratic talking points.

Posted by redbds at 03:12 PM

It''s all related. Nearly ever challenge this country now faces was brought about directly by the hands of Bush administration and the "moral majority" neocons. I wish this was an exaggeration. I really wish it was. But the cold, hard reality of it is that we''ve let a morally bankrupt tyrant ruin our country and we have - quite simply - had enough. Anger doesn''t even begin to describe the emotions appropriate to the treachery of the neocons.

[tylenol6]

Ron Paul says also in this housing bill there is a bill
buried in this housing mess where all your credit card transactions will be reported to the IRS. Nice huh??? You can thank all the idiots in congress for passing these bills without even reading it. Sounds like the government wants to know everything YOU purchase.

[txlakeside]

Good thing about the neocon ... their time is near the end. It will be decades before they can figure out how to scam americans again! I predict they will be flushed from both houses and the Presidency.

You greedy, selfish, crooked little repubs will soon really be crying!

[tylenol6]

Instead of the 2 clowns running for president, why not
think of writing in Ron Paul for president. If anyone
has done their research, they will find out Ron Paul
has been the only honest one who is telling us the
truth. Google Ron Paul...See for yourself. Guarantee you
will like what he says. Ron Paul stands for the
Constitution.

[donevis-2009]

don''''t tell me that you believe everything you see on the internet. That is absolutely absurd. Besides the IRS is way too busy trying to collect money from deadbeats that don''''t want to pay their taxes they have nothing to do with credit card transactions. Besides that information is already readily available to anybody that wants it. All they have to do is pay your credit card company for it.
Posted by redbds at 03:18 PM : Jul 25, 2008

Gee I guess "The Congressional Record" Lies and makes up what goes on in Congress. Open your eyes blindman.

[irliberal]

that why people dont pay their mortgage?

Posted by jamesm12341 at 03:24 PM

This liberal''s house is paid for, in full. Sent in my payoff check two years ago, and I retire in five years.

Those individuals being foreclosed on are both democrats and republicans. The predatory lending practices happened because the Bush administration thought it was more important to invade Iraq, kill thousands of more american soldiers, hundreds of thousands of Iraqi civilians and waste billions upon billions of taxpayer dollars there instead of paying attention to the problem of predatory lending here at home.

[redbds]

You greedy, selfish, crooked little repubs will soon really be crying!

Posted by txlakeside at 03:23 PM : Jul 25, 2008

If you get your wish we will all be crying. If your Neomesiah Oblama gets elected anyone that is not on welfare will be crying. Take from the hard working and give to the deadbeats. That is what your Oblama Hood wants to do for this country. More govenment, more taxes, less wealth for the hard working and more handouts for the lazy. That is the new liberal platform.

[xyno-2009]

Those individuals being foreclosed on are both democrats and republicans. The predatory lending practices happened because the Bush administration thought it was more important to invade Iraq, kill thousands of more american soldiers, hundreds of thousands of Iraqi civilians and waste billions upon billions of taxpayer dollars there instead of paying attention to the problem of predatory lending here at home.

Posted by IRLiberal at 03:28 PM : Jul 25, 2008

=========================

Nobody made these people sign their contracts. They gambled that their home prices would continue to increase and were using their home equity as an ATM machine. Now it''s time to deal with the consequences.

[smirk5]

Remember when Bush would proudly tout the level of home ownership when ever he was pushing his economic accomplishments? He quit doing that for some reason.
Remember when Cavuto complained that Bush wasn''t getting enough credit for the economy during his DOW 14,000 celebration? For some reason, he stopped that celebration and he never asks that Bush get credit for the economy anymore. I wonder why.

[r9119111]

There is nothing wrong with predatory lending if you are a Republican. Be sure to vote Republican again if you lose your job and home. You deserve it the most.

[vnveteran72]

Remember to Vote Neocon Nazi Party to complete this Destruction of America!!!.....Don''t leave the job half way done!!!!.....Vote Insane McCain for 4 more years of the Same!!!

Pappy McOldshrub, ''08

[david1737]

Excerpt from AP article

"The general co-chairman of John McCain %u2019s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law (see Gramm-Leach Act) which contributed significantly to today%u2019s Sub Prime meltdown and economic turmoil."

Since last Friday, under intense political preasure, Phil Gramm stepped down as McCain''s co-chair, but is still his economic guru.

If you want more of the same vote McCain!

[redbds]

There is nothing wrong with predatory lending if you are a Republican. Be sure to vote Republican again if you lose your job and home. You deserve it the most.

Posted by r9119111 at 03:48 PM : Jul 25, 2008

The difference between conservatives and liberals is that if a conservative looses his job he will look for another one. If a conservative looses his home he will balame himself for not working hard enough. Liberals that loose their jobs and homes will sit around blaming everyone else and asking for the government to bail them out. Then they will complain about it when they get bailed out because it wasn''t enough or it wasn''t fast enough.

[david1737]

f you get your wish we will all be crying. If your Neomesiah Oblama gets elected anyone that is not on welfare will be crying. Take from the hard working and give to the deadbeats. That is what your Oblama Hood wants to do for this country. More govenment, more taxes, less wealth for the hard working and more handouts for the lazy. That is the new liberal platform.

Posted by redbds


Stop lying it''s bad for the soul!

[david1737]

Ask this simple question:

Are you better off now than eight years ago?

Fact:

Under Obama''s tax plan 90% of Americans will pay less taxes.

[henmur-2009]

Home Foreclosures Up 121 Percent
"or one in every 171 U.S. households, Irvine, Calif.-based RealtyTrac Inc. said. That''s up 121 percent from the second quarter of 2007. "
So they went from .265% to .585%...still less than 1% of all homes. I guess Mark Twain was right..."Lies, *** lies and statistics"

[redbds]

Under Obama''''s tax plan 90% of Americans will pay less taxes.

Posted by david1737 at 03:56 PM : Jul 25, 2008

I don''t beelieve it for a second.

[dougmsbbs]

You idiots! This has nothing to do with Bush or who is in charge in D.C. It IS about people who took out loans they knew they would never be able to pay off, and the people who wrote out those loans. Now, like most libs, your crying it''s someone elses fault and you want the Goverment to bail you out. Boo-hoo. Why can''t all you libs take charge of your own lives and leave the rest of us alone. IT WASN''T MY FAULT AND I''M NOT GOING TO BAIL YOU OUT! Morons.

[xyno-2009]

Excerpt from AP article

"The general co-chairman of John McCain %u2019s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law (see Gramm-Leach Act) which contributed significantly to today%u2019s Sub Prime meltdown and economic turmoil."

Posted by david1737 at 03:53 PM : Jul 25, 2008

=====================

And signed into law by Bill Clinton.

[redbds]

IT WASN''''T MY FAULT AND I''''M NOT GOING TO BAIL YOU OUT! Morons.

Posted by dougmsbbs at 03:59 PM : Jul 25, 2008

Well said! But it looks like the liberal congress will work a bailout in there somehow.

[r9119111]

You idiots! This has nothing to do with Bush or who is in charge in D.C. It IS about people who took out loans they knew they would never be able to pay off, and the people who wrote out those loans. Now, like most libs, your crying it''''s someone elses fault and you want the Goverment to bail you out. Boo-hoo. Why can''''t all you libs take charge of your own lives and leave the rest of us alone. IT WASN''''T MY FAULT AND I''''M NOT GOING TO BAIL YOU OUT! Morons.

Posted by dougmsbbs at 03:59 PM : Jul 25, 2008

-----------

You idiot: The investors are the ones who should lose their investment because they knew they were lending to people who couldn''t repay the mortgage.

[vnveteran72]

Neocon Nazis are never responsible for any of the many Clusterf**ks that have befallen our Nation under their Heinous Rule......It was Bill''s BJ.....everyone knows that.....just ask ''em......LMMFAO