Monday, July 6, 2009
Are Foreclosures on the Rise?
"Just as the nation's housing market has begun showing signs of stabilizing, another wave of foreclosures is poised to strike, possibly as early as this summer, inflicting new punishment on families, communities and the still-troubled national economy. Amid rising unemployment and falling home prices, mortgage defaults have surged to record levels this year. Until recently, many banks have put off launching foreclosure action on the troubled properties, in part because they had signed up for the Obama administration's home-stability plan, which required them to consider the alternative of modifying loans to make it easier for borrowers to make payments."
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4 comments:
I think foreclosures are on the way up because
1. loan defaults are up sharply.
2. with many government and banks' self-imposed foreclosure moratoriums expiring,
3. the biggest lenders indicate that they are likely to move more aggressively to clear up a backlog of troubled mortgages
4. massive job losses
I think foreclosures would rise due to the skyrocketing rate of unemployment.
According to The nation's payrolls fell in June by 467,000, much more than the 325,000 forecast for June, while wages were stagnant. The drop caused a sell-off in U.S. stocks, with the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 8,324, +42.85, +0.52%) losing more than 170 points in the morning."
The jobless rate jumped to 9.5 percent, the highest since August 1983, from 9.4 percent.
It is really scary...feds should really do something.
I agree with the author that foreclosure is on the rise and I think it is sort of a vicious cycle and it is not going to stop soon.
I think unemployment is the biggest reason for it. Plus many people can pay but WON'T PAY the loans because the house has depriciated a lot.
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