Foreclosures Continue to Threaten Americans in Q2
- Posted on August 21, 2011 at 9:20pm by
Becket Adams
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According to a quarterly survey that covers nearly 88 percent of primary residential mortgages (totaling nearly 44 million loans), more and more Americans are at risk of foreclosure, reflecting the weakened state of the U.S. economy.
“Mortgage delinquencies are no longer improving and are now showing some signs of worsening,” Jay Brinkmann, chief economist of the Mortgage Bankers Association (MBA) said in a recent AP report.
“While overall mortgage delinquencies increased only slightly between the first and second quarters of this year, it is clear that the downward trend we saw through most of 2010 has stopped,” he said.
The MBA said earlier this week that 8.44 percent of homeowners missed at least one mortgage payment in the April-June quarter. That figure, adjusted for seasonal factors, rose 0.12 percentage point from the January-March period.
In a normal market, the percentage of delinquent borrowers is about 1.1 percent, according to the trade group. That being said, it is cause for concern that the figure is currently 8 times what it should be.
However, there is some “good news”: delinquent mortgages have fallen from more than 10 percent of residential mortgages a year ago. But there is a catch: the decline is due in part to delays in foreclosure filings that are backlogged in several state courts, including Florida, New Jersey, Illinois and New York.
So in reality, it is not improving economic situations that caused the dip from 10 to 8.44 percent. It is inefficient bureaucracies.
Marketplace analysts are also warning that state and federal investigations into faulty foreclosure paperwork will likely lead to increased foreclosures later this year.
So it was not really good news then, was it?
Analysts say the increase is especially worrisome because it is due mainly to high unemployment, which naturally leads to missed payments which, in turn, leads to foreclosures.
“The current processing delays mean this will not happen quickly, underlining our view that both the housing market and the economy will remain weak for a few years,” said Paul Dales, senior U.S. economist at Capital Economics.
But at least for some, there is “nothing wrong with out country right now.”
(The Associated Press contributed to this story).
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rfycom
Posted on August 25, 2011 at 5:19pmIt ain’t our fault.
Report Post »jnobfan
Posted on August 25, 2011 at 9:45amJust had an appraisor at my house yesterday for a re-fi. He told me that he has been doing foreclsure appraisals for Fanny for the last 3 years. He said that last month the work stopped because Obama decried that all fannie forecloserures have been canceled. That means the banks will get re-imbursed by the Fed for the loans and the people don’t have to pay their mortgage. About the same time he cancelled all deportation of illegals. See a pattern developing here?
Report Post »freedomcatcher
Posted on August 24, 2011 at 10:41amForclosure is mostly nothing more than an asset forfeiture scam concieved and perpetrated by an insane, irrational, and corrupt legal system.
Report Post »shirtsbyeric
Posted on August 23, 2011 at 10:50pmThis IS the Great Depression of MY lifetime.
Report Post »progressiveslayer
Posted on August 23, 2011 at 6:48pmBarry sure has a problem in that he needs the system to collapse but how to get reelected?? hmmm
Report Post »I know massive voter fraud using mindless union drones that‘s the ticket I’ll use those morons.The transformation of America brought to you by socialists communists and progressives,Barry please make another speech about the economy I want to see my gold holdings sky rocket.
Keggs1961
Posted on August 23, 2011 at 10:39pmYou might want to sell the gold and by canned goods and ammo! But then again Obama would never confiscate your gold or would he?
Report Post »AmericablessGod
Posted on August 24, 2011 at 7:45amThis is the only way he will be re-elected – fraud. He is a fraud and the King of Fraudville.
In a nearby Ohio district in 2010, Steve Chabot narrowly defeated the democrat and it was later found that there were 15% more democrat votes cast than registered democrats from that district. 34 people claimed a vacant lot as their home address and were allowed to vote.
If we don’t watch vigilantly, this will happen again, and on a larger scale. My Ohio TEA Party has a strategy to poll watch in most inner-city districts and has already pushed for tighter early voting legislation that is now in effect.
Remember this – democrats will do anything, legal or not, to win. They truly believe that the ends justify the means. We must not allow them to steal the next election!
Report Post »TheDailyEconomyReport.com
Posted on August 23, 2011 at 4:25pmMortgage resets will hit an all-time high in November of this year, surpassing $40B. 2012-2014 will see more foreclosures than the last go’round which saw about $35B in resets. Real estate still has a ways to go (down). The stimulus kept the real estate market from falling back to a normal equilibrium.
Report Post »SamIamTwo
Posted on August 23, 2011 at 6:57amI wonder what the historical foreclosure rates are from 1970 to say current date would show us…
It would be nice to have a baseline or trend line. We have foreclosures throughout the past…so show me the scare visual. lol
Report Post »SamIamTwo
Posted on August 23, 2011 at 7:00amMeh, don’t know how reliable this is but here is a visual. http://www.freeby50.com/2008/10/home-foreclosure-rates-past-and-present.html
Report Post »SamIamTwo
Posted on August 23, 2011 at 7:06amPDF file old GAO report to Barny Rubble Frank. http://www.gao.gov/new.items/d0878r.pdf
Report Post »AmericablessGod
Posted on August 23, 2011 at 2:05pmForeclosure rates are at an all-time high around 2.8%. During the Great Depression (1933) it was 1.3% and hit a high rate again in 1990 of 1.1%. During the 1970′s the rate remained below 0.4%.
It really is that bad! It will only get worse if unemployment is prolonged further by this administrations anti-growth policies and extensions of unemployment benefits.
I just interviewed someone for a position I’ve been trying to fill for 2 months and he told me that he was “ready to go back to work because he‘s been on unemployment for 2 years and it’s about to run out.” What a world!!
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