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Foreclosures At Record Number In August

From an unfazed Reuters:

Banks take over record number of homes in August

By Lynn Adler Thu Sep 16, 2010

NEW YORK (Reuters) – A record number of homeowners lost houses to their banks in August as lenders worked through the backlog of distressed mortgages, real estate data company RealtyTrac said on Thursday.

New default notices decreased at the same time, suggesting that lenders managed the flow of troubled loans and foreclosed properties hitting the market to limit price declines, the company said.

Root problems of high unemployment, wage cuts, negative home equity and restrictive lending practices persist, however, pointing to lingering housing market pain.

“Restrictive lending practices” like only giving mortgages to people who can afford them?

RealtyTrac sees a record 1.2 million repossessions this year, up from just under 1 million last year, with more than 3.2 million homes in some stage of foreclosure.

In 2005, before the housing bust, banks took over just about 100,000 houses, according to the Irvine, California-based company

Banks foreclosed on 95,364 properties in August, topping the May 2010 record by 2 percent. These repossessions, or real estate owned (REO) homes, jumped 3 percent in the month and 25 percent in the year…

It will take about three years to work through the stockpile of distressed housing, [RealtyTrac senior vice president Rick] Sharga said, resulting in a market that moves sideways.

"I don’t think it gets any better really until the end of 2013," he said

Foreclosure auctions were scheduled for the first time on about 147,000 properties last month, up 9 percent from July and the second highest total in records dating back to April 2005.

Nevada, Florida, Arizona and California had the highest state foreclosure rates in August, with Nevada topping the list for the 44th straight month despite a 24 percent drop in foreclosure actions from a year earlier

And yet, if we are to believe the polls, Harry Reid is still running neck and neck with Sharron Angle.

Maybe the voters in Nevada actually believed him when he said he didn’t have anything to do with the foreclosures in Nevada.

This article was posted by Steve on Thursday, September 16th, 2010. Comments are currently closed.

4 Responses to “Foreclosures At Record Number In August”

  1. proreason says:


    Foreclosures running over 1,000,000 per year.

    Just curious. What was the rate before Barney Frank decided that banks had to give houses to people so they would vote for him and his cronies?

  2. Rusty Shackleford says:

    It’s also noteworthy that Obama’s mortgage relief program is a huge flop as well.



    If only someone had seen this coming—

  3. Petronius says:

    September economic snapshot :

    First the bad part –– Obamaland.

    • America’s underlying economic foundation, built on Democrats’ massive spending and debt, is unstable.
    • Foreclosures at an all-time high. Home sales hit a 15 year low last month; new home sales recorded a 50 year low.
    • Unemployment steady at 10% (official) or 23% (actual).
    • GDP grew only 1.6% in second quarter.
    • Obamacare a dangerous and expensive experiment, the full extent of its economic damage cannot yet be predicted.
    • Expiration of Bush tax cuts 3 months away.
    • Stock market uncertain and volatile.
    • Bonds in a bubble.
    • Stimuli have been used up. Over a trillion dollars down the drain. Democrats want to spend more.
    • Fed has been buying more government debt, and announced it intends to buy much more––leading to a weaker US dollar.
    • China cut its holdings of US Treasuries.
    • At some point inflation and a weaker dollar will result.
    • Global loss of confidence in the US dollar, which is no longer perceived as a safe haven and is moving lower.
    • Prices of agricultural commodities are on the rise, which is inflationary.
    • Several States are candidates for bankruptcy. Added pressure on States’ resources coming from open borders and mass migrations.
    • Oil drilling shutdown in the Gulf; rigs moving overseas.
    • American businesses moving their operations overseas.

    Now the good part –– the rest of the globe.

    • American businesses moving their operations overseas.
    • American oil drillers moving their rigs overseas.
    • Asian markets are very strong.
    • China’s growth 10%, Singapore 18%, India 8.8%. Malaysia is red hot and smoking.
    • China now the #2 economy in the world, passing Japan.
    • China now the #2 oil importer, driving up oil prices.
    • Germany also gaining strength. Europe improving.
    • Resource rich Australia and Canada are strong, supported by Asian demand for raw materials.
    • Gold hit new all time high; precious metals are in a very strong bull market, fueled by uncertainty, Fed easing, and loss of confidence in Democrat rule.
    • Safe haven currencies (Swiss franc) and commodity currencies (Australian and Canadian dollars) are strong.

    So the juxtaposition is violent.

    Why is the entire globe in an economic recovery, except for the USA? Hmmm?

    • proreason says:

      Take away government payola spending, and GDP is actually negative, like the prior 8 quarters.

      Do you count credit card loans as income when you talk to your friends?

      Our government does.

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