Posted on 09/16/2010 7:57:56 AM PDT by SeekAndFind
The extend and pretend approach of the Treasury Department, through HAMP, has reached its end, and foreclosures are surging higher than ever.
Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis.
The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.
In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.
August makes the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. The previous high was in May.
There are enough homes in delinquency that the properties entering the system slowing will have no material effect on foreclosures increasing. And that shows no signs of abating. Whats more, banks are basically forbearing the first couple months of delinquency, artificially lowering the number of homes entering foreclosure because they dont want to initiate the process.
Less trial modifications are being taken up through HAMP, as word of mouth spreads that the program is less than helpful at best and a predatory lending scheme at worst. The banks remain reluctant to do affordable workouts, especially with second liens, because theyd rather pretend the profits from them are on the books. Theyd rather get something for the homes by returning them to the market, even though sales are at their lowest in 15 years. This giant shadow inventory just becomes a loss leader month after month for the banks, as more people just decide not to pay and take the risk of playing foreclosure roulette.
(Excerpt) Read more at news.firedoglake.com ...
Means there will be an awful lot of $60,000 houses.
Also means, it won’t matter as our entire economic system will have collapsed, which seems to be the goal.
It is hell, esp. here in Arizona!!!
Pennsylvania is another state that probably has a low foreclosure rate. Very old and static in a lot of ways, which made it seem like a dinosaur a decade ago but provides a degree of comfort these days.
http://www.freerepublic.com/focus/news/2589698/posts?page=20#20
I see what you mean. I’ve heard of that happening in the Inland Empire area of California, too. Entire tracts of McMansions and Garage Mahals just standing vacant in the desert. Such strange times.
Heh. Finally. I have been waiting for housing sanity for a long time. I knew prices were unsustainable simply because not enough of us young’uns could afford one. When that happens, the market inevitably falls out.
Then we’ll see prices the equivalent of what our parents and grandparents paid for theres, and guess what? They will be so upset that instead of making money on their homes, they will be lucky to get back what they paid for it.
I’ve in California for 11 years, near Studio City. And with the oversupply of housing you would think there would be no construction but within one block of me are three sites underway, 2 48-condo projects and one 200-condo project all within one hundred yards of each other. I have no idea who is going to buy these. Crazy.
Where do you live ?
The death of the middle class is the final result of this tug of war.
The blame ultimately though shifts on the Democrats for going back to trying to raise up an informal ogliarchy.
The Republicans whatever their failings never made any promises or lied about what they were fighting for.
It is not bitterness that drives me to put these words down but just observation.People who voted for this administration looking for a helping hand to get them out of this...........got pretty much screwed over.
Doesn’t make them right or wrong for asking for them but you can’t have that kind of double-faced presence running this country.
Mind you all I keep thinking is what a liability it is going to make in terms of Banks having to hold over these properties.
Phoenix
How much you would get if you rent your home ?
Not sure as we have nowhere to go and no $$$ to go anywhere. Right now, our home needs a total paint job inside, new carpeting, there are termite lines outside on the foundation .........I don’t know. It does annoy me that my husband walked out on us so I am left with this baggage and three teens.
you are exactly right - if you buy now you will be a very rich man in 20 years
It’s an old bank rule, very simple. Your total monthly
expenditures including mortgage, insurance and all other
payments, should not exceed 36% of you gross pay.
Very simple.
I will if you loan me the money!
My apologies. I misread your post as meaning the cost of the house shouldn’t exceed 2 to 2 1/2 times one’s income.
No, you read it right.
Yearly income = $50,000
Max mortgage = $125,000 with 20% down.
Standard banking rules for decades. Changed with the feds
forcing banks to loosen lending practices (red lining).
Banks used to hold their own paper and were very careful to
whom they loaned to.
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