Posts Tagged foreclosures
While the economy is being talked up, the scale and momentum of foreclosure is rising – the trigger – Jobs.
NEW YORK (CNNMoney.com) — The number of Americans who have fallen at least 30 days behind on their home loan payments jumped 44% in the second quarter from a year ago, according to an industry report.
That puts delinquencies at a record 9.24% of mortgages, according to the National Delinquency Report from the Mortgage Bankers Association (MBA). That represents more than 4 million of the 45 million borrowers covered by the report.
What the rate does not include, however, are loans already in foreclosure. Some 4.3% of all the mortgages are in that stage, up from 3.85% three months earlier and 1.55 percentage points from one year ago.
The combined percentage of loans past due and those already in foreclosure hit 13.16% during the quarter, the highest ever recorded by the MBA survey
“There was a major drop in foreclosures on subprime ARM loans,” said Jay Brinkmann, chief economist for the MBA, in a prepared statement. “The drop, however, was offset by increases in the foreclosure rates on the other types of loans, with prime fixed-rate loans having the biggest increase.”
Indeed, the MBA survey reported that prime, fixed-rate mortgages accounted for nearly one in every three foreclosure starts. That’s way up from a year ago, when only one of every five foreclosure start involved a prime loan.
That bodes ill for the future health of the mortgage market. Prime loans make up two-thirds of the mortgage market, and if delinquencies among these mortgages continue to proliferate, the number of foreclosures will soar.
Here, the Guardian adds more on the economy itself:
One of the difficulties facing lenders is that job losses continue to mount, with recession-hit employers cutting more than a quarter of a million positions each month. When mortgage customers lose their jobs, they no longer qualify for refinancing as they generally have no means of meeting even cut-price repayments.
A surprise drop in retail sales delivered a further blow to economic sentiment. Figures from the US department of commerce showed that till receipts dropped by 0.1% in July, confounding analysts’ expectations of a rise of between 0.7% and 0.8%. After stripping out car sales boosted by the government’s “cash for clunkers” subsidy programme, retail sales fell by 0.6%.
The following are the top foreclosure states in the country for the first half of 2009. The figures are total foreclosures filed, according to RealtyTrac.com. (Source: Daily Record Jacksonville Fl)
1. California — 391,611
2. Florida — 269,064
3. Arizona — 89,799
4. Illinois — 68,932
5. Nevada — 68,708
6. Michigan — 60,786
7. Ohio — 58,937
8. Georgia — 56,391
9. Texas — 49,144
10. Virginia — 28,368
Everyone hoped that by now there would be signs that things are getting better – all this talk of “Green Shoots”
But it looks as if they are getting worse. Here WJCT link to a piece by NPR ATC that makes it clear that the major financial institutions have set aside the voluntary pull back from foreclosure asked by by the Obama administration.
On Thursday, RealtyTrac released a report that showed home foreclosures nationally have risen 15 percent for the first half of 2009 compared to the same period in 2008. RealtyTrac’s figures suggest Texas’ foreclosure levels have dipped almost 15 percent compared with the same period last year.
RealtyTrac CEO James J. Saccacio said the record levels of foreclosures come “in spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity….” and are being driven by unemployment and a high number borrowers who owe more on their mortgage than their home is worth.
“Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”
All the more reason for us in Pub Media to stay focused on this work
Post on the Planet Money blog: 6-23-2009:
“The National Association of Realtors says sales of previously owned homes rose 2.4 percent last month. Falling prices and increasing foreclosures are likely the reasons for the jump — the median home price fell 17 percent last month while foreclosure filings surpassed 300,000″
“Tax breaks for first-time buyers are also helping out the market. Of the people who bought homes in May, 29 percent were first-time buyers. President Obama’s stimulus plan includes an $8,000 tax credit for people who purchase their first home before December 1.”