Posted on April 15th, 2008 in Daily Mortgage/Housing News - The Real Story
Numbers are just getting worse month over month. The ‘Foreclosure Market’ has quickly become the ‘Real Estate Market’. The ‘negative equity effect’ is in full force, as people walk from their homes and chose to rent vs. paying 2 to 3x for a mortgage, home ownership and all the other expenses that come along with it. Today, the ForeclosureRadar CA foreclosure report comes out and I will have it posted as soon as it is released to the public. On top of it all, there are no ‘affordable’ mortgage programs to help people in higher-priced States such as CA, so you cannot refinance out of your problems. This is all going down a road that will lead to a national ‘loan amount reduction’ bailout, where the Fed prints money, mortgage balances are reduced across the board and overnight, everyone is right-side up in their homes again. Either that, or they bring back all the exotic/affordable loan programs. -Best, Mr Mortgage
U.S. Foreclosures Jump 57% as Homeowners Walk Away (Update2) By Dan Levy
April 15 (Bloomberg) — U.S. foreclosure filings jumped 57 percent and bank repossessions more than doubled in March from a year earlier as adjustable mortgages increased and more owners gave up their homes to lenders.
More than 234,000 properties were in some stage of foreclosure, or one in every 538 U.S. households, Irvine, California-based RealtyTrac Inc., a seller of default data, said today in a statement. Nevada, California and Florida had the highest foreclosure rates. Filings rose 5 percent from February.
About $460 billion of adjustable-rate loans are scheduled to reset this year, according to New York-based analysts at Citigroup Inc. Auction notices rose 32 percent from a year ago, a sign that more defaulting homeowners are “simply walking away and deeding their properties back to the foreclosing lender” rather than letting the home be auctioned, RealtyTrac Chief Executive Officer James Saccacio said in the statement. CONTINUED – CLICK LINK BELOW