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September 11, 2009

4

Home Foreclosures Up 18%

by Bob Schwartz
home foreclosures

home foreclosures

Home foreclosures were up 18% in August vs. August 2008 as reported by RealtyTrac of Irvine, California.

One in every 357 U.S. households with loans got a foreclosure filing in August.

RealtyTrac is revising up its estimate for filings this year and now expects a more prolonged foreclosure crisis.

Some 3.4 million households will get a filing this year, up from the prior estimate of 3 million to 3.2 million, and sharply higher than 2.3 million filings last year.

If the forecast is realized, it will be more than four times the filings in 2005, before the deepest housing crash since the Great Depression began.

Rick Sharga, senior vice president at RealtyTrac said:

“We had been thinking that this year would be the peak, but at the rate things are going right now, it’s appearing more likely that late 2010 might be the peak year before things start to moderate. I don’t expect it to be that 2010 will peak and 2011 will be the wonderful land of Oz.”

California REOs dropped 32 percent from July, but the state continued to post the highest overall total with 92,326 properties with loans getting a filing.

RealtyTrac’s James Saccacio said:

“We also saw a record high number of properties either entering default or being scheduled for a public foreclosure auction for the first time.”

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4 Comments
  1. Austin Attorneys
    Sep 14 2009

    Negative equity is a big deal no doubt but I believe that job loss is what will really create a wave of foreclosures this year.

    Austin lawyers

  2. San Diego dentist
    Sep 14 2009

    Not all foreclosures are due to bad mortgages. I would imagine a healthy number are from folks being out of work too. High and prolonged unemployment has gotta spike the foreclosures.

    San Diego cosmetic dentist

  3. San Diego agents
    Sep 14 2009

    The housing market peaked around 2005-2006. A lot of 5-year fixed interest-only loans will reset in 2010-2011. Which is means yes, we will see more foreclosures in the future.

    San Diego real estate agents

  4. Los Angeles Lawyers
    Sep 14 2009

    Everyone likes to talk about the foreclosures as if it’s a bad thing when the reality is that it’s an incredibly good thing. All the bad loans inflated the market well beyond what it should have been. As these people default on their bad loans the price of housing corrects, as it should, and maybe the rest of us get to buy. This story is good news and it should be reported as such. Or, would we all be better off if the government steps in and inflates pricing again.

    Los Angeles attorneys

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