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Foreclosures Break Record Despite Aid

From an unfazed Reuters:

U.S. 2009 foreclosures shatter record despite aid

By Lynn Adler Thu Jan 14

NEW YORK (Reuters) – U.S. foreclosure actions shattered all records in 2009 and will do so again this year, with unemployment and wage cuts overcoming programs to remedy failing home loans, RealtyTrac said on Thursday.

A record 2.8 million properties with a mortgage got a foreclosure notice last year, jumping 21 percent from 2008 and 120 percent from 2007, the Irvine, California-based real estate data company found.

The loan failure rate — and thus the fallout for home prices and the economy — would have been even worse without foreclosure prevention programs and loan processing delays caused by sheer volume, the company said.

And how does ‘the company’ know this? Divine revelation? They provide no documentation to substantiate their claim.

(Of course this line may have been inserted to deflect the wrath of the Obama White House.)

In many cases loan fixes don’t stick, however, and so a new record of at least 3 million properties getting a filing is seen in 2010. Filings include notice of default, auction sale or bank repossession.

State, federal and private efforts to modify loan terms for at-risk borrowers either don’t go far enough or are expanding too late to help many struggling homeowners on a permanent basis, many industry experts and economists agree

One in every 45 households got at least one filing last year, a rate almost four times that of 2006…

Refinancing to lower monthly costs was also out of the question for many homeowners because the value of their house fell below the size of their mortgage.

Despite some recent improvement, prices have toppled nearly 30 percent from their peak in 2006 through October, according to Standard & Poor’s/Case-Shiller indexes.

Yale University economist Robert Shiller, a creator of the S&P/Case-Shiller home prices index, told Reuters on Tuesday he expects renewed price erosion in coming months.

Foreclosure notices were made on more than 349,000 properties in December, a 14 percent jump from November despite various moratoria, RealtyTrac said. It was the tenth straight month that notices topped 300,000, driving the year’s total to a record of more than 3.9 million.

Nevada had the highest foreclosure rate for the third straight year, with more than 10 percent of households with loans getting at least one notice. Arizona and Florida were in second and third places. California, Utah, Idaho, Georgia, Michigan, Illinois and Colorado were the other states with loan failure rates among the 10 highest for U.S. states.

California, Florida, Arizona and Illinois accounted for more than half of all foreclosure actions in 2009 as more than 1.4 million properties got a notice. ..

Banks repossessed a record of more than 918,000 properties last year, 6.5 percent more than in 2008…

Why do we never have any polls that ask if we are better off now than we were three years ago? That is, before the Democrats took over Congress in January 2007.

After all, anybody who has ever taken Civics 101 knows that Congress controls economy far more than any President can. (Something we saw once the Republicans took over Congress under President Clinton.)

Does anyone think we are better off now than we were three years ago?

This article was posted by Steve on Thursday, January 14th, 2010. Comments are currently closed.

7 Responses to “Foreclosures Break Record Despite Aid”

  1. GetBackJack says:

    Well … if you’re an illegal alien dishwasher who qualified for a $400,000 house on an income of $5.75 an hour, I’m pretty sure no amount of restructuring that loan is gonna pave over the essential problem.

    If you’re a pair of knuckleheads, not married but banging out obese babies and sorta kinda working in low end jobs (want fries with that?) you’re barely qualified for and have a combined income of $20,000 a year and are on government assistance with monthly bills totaling in excess of $5,000 you qualified for a $550,000 home on a subprime, NoDoc variable rate mortgage that started out for twelve months at 1.0% interest but had a balloon in 18 months for $38,000,000 … then your mortgage help ain’t coming.

  2. proreason says:

    American Spectator published an article a few days ago that said Fannie Mae deliberately forced banks to lower the credit score hurdle for mortgage loans to a level that decades of data indicated would cause a 30% forclosure rate.

    And of course, this was done at the insistance of the federal government, as embodied by those noted patriots Barney Franks, Chris Dodd, and Barack Obama.

    It’s well known, of course, that this is one of the 2 major underlying causes of the 2008 economic catastrope that has impoverished an entire generation of senior citizens. The Federal Reserve’s reckless low interest rates in the early 2000’s is the other major underlying cause. (note: these factors were corruptly leveraged by George Soros and other evil aristocrats in September 2008 to trigger the economic collapse and get the Moron elected. But the underlyting causes were already in place.)

    Both of those 2 incredibly stupid government actions perfectly illustrate the overwhelming danger of Big Government.

    Even if you choose to believe that those actions were well intended (I don’t believe it for a second), you have to recognize, with 2010 hindsight, what HUGE RISKS both actions were. It’s 100% clear. They were so HUGE, that when things went bad, the world’s economy collapsed. It wasn’t greedy bankers. It wasn’t greedy citizens. It was stupid, arrogant, corrupt, self-motivated government.

    Everything big government does is risky, for the simple reason that every action impacts 300 million people. There is absolutely no way that unregulated business would have taken the actions the government forced on this country. A few banks might have tried it, but they would have quickly failed and the other banks would have reverted to the tried and true lending practices.

    It’s the reason that the USSR’s central planning ALWAYS FAILED. It wasn’t that the central planners were stupid. It wasn’t that the Russian people were incompetant. It was because massive decisions made by a handful of people simply cannot adapt to life. Life changes all the time. And no small group of people can understand and control the infinite complexities of how people react to life. Big Government, be it socialist, communist, or capitalist, is abjectly, impossibly incapable of reacting fast enough and making decisions good enough.

    Couple that with corrupt politicians, and generations are impoverished.

    But it could never happen with Health Care, could it?

  3. proreason says:

    If you don’t understand the problem, look at the chart in this Hot Air post:

    http://hotair.com/archives/2010/01/14/chart-of-the-day-2/

  4. MinnesotaRush says:

    Oh my gawd!

    “The loan failure rate — and thus the fallout for home prices and the economy — would have been even worse without foreclosure prevention programs …”

    ROFLMAO!!! Yeah .. yeah .. for sure!!!

    And if o-blah-blah hadn’t been elected and his idiotic plans not been put in place ..
    * Christmas .. hell .. the birth of Christ .. would of been cancelled,
    * North Korea wouldn’t have sent all their nukes to the bottom of the sea,
    * Ahk-ma-ding-bat wouldn’t be considering converting to Catholicism,
    * Haitti’s earthquake would have been a 63 point magnitude,
    and on and on and on! Fill in the blanks S&L’rs .. we know there’s more!

    This Reuters dinghie must be bucking for a job in the o-blah-blah “spin control division” at the Whitehouse or maybe Gibbs’ spot.

  5. David says:

    State, federal and private efforts to modify loan terms for at-risk borrowers either don’t go far enough or are expanding too late to help many struggling homeowners on a permanent basis, many industry experts and economists agree…

    Wow, they are readily admitting that their goal is a to make a homeowner reliance on government permanent. I wish someone would take the time to figure out how many foreclosures might be averted if the monthly payments were reduced a few hundred dollars by eliminating property taxes for these struggling families instead of strapping the whole country with their loss?


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