Posted on 07/15/2010 9:37:27 AM PDT by NormsRevenge
NEW YORK (Reuters) – Banks repossessed a record number of U.S. homes in the second quarter, but slowed new foreclosure notices to manage distressed properties on the market, real estate data company RealtyTrac said on Thursday.
The root problems of job losses and wage cuts persist, making a sustained U.S. housing recovery elusive.
Banks took control of 269,962 properties in the second quarter, up 5 percent from the prior quarter and a 38 percent spike from the second quarter of last year, RealtyTrac said in its midyear 2010 foreclosure report.
Repossessions will likely top 1 million this year.
"The underlying conditions haven't improved," RealtyTrac senior vice president Rick Sharga said in an interview.
The housing market still grapples with "unemployment, economic displacement in general, and still sits on over 5 million seriously delinquent loans that in all likelihood will at some point go into foreclosure," he said.
In 2005, the last "normal" year in housing, Sharga said, about 530,000 households got a foreclosure notice and banks took over a comparatively minuscule 100,000 houses.
This year more than 3 million households are likely to get at least one foreclosure filing, which includes notice of default, scheduled auction and repossession, Irvine, California-based RealtyTrac forecasts.
(Excerpt) Read more at news.yahoo.com ...
Fortunately, that number is actually going to be 1.5M due to the 3.5M new jobs Joe Biden said were created. /s
Now what are the banks going to do with all those houses but sell them at a huge loss, which means depositors will soon be feeling the pinch. Well, of course, everything is going according to the Congressional Progressives plan. Soon the government will be nationalizing the banks, and the people will be royally robbed!
I could have predicted this horror story when the government coerced the banks to issue sub prime loans! When was that? Five years or so ago?
“When was that? Five years or so ago?”
Started with President Carter.
Foreclosures will slow down because once the bank owns the home, it is liable for property taxes and insurance on it. They already are on the hook for a whole boatload of properties.
Of course, Obozo will proclaim this as some kind of ‘success’ - the falling foreclosure rate.
No, sub prime loans began with GWB. There were no sub prime housing loans available in Carter’s time.
***“When was that? Five years or so ago?”***
>>>Started with President Carter.>>>>
Correct! Carter with the CRA; Clinton enabled it further; and Bush tried to stop it with oversite of Fannie and Freddie on FOURTEEN OCCASIONS, but Congress refused to go along with it.
“Foreclosures will slow down because once the bank owns the home, it is liable for property taxes and insurance on it.”
.
Foreclosure changes nothing WRT taxes. The timeline for a tax sale begins 10 days after the taxes first become delinquent, and five years after that, even the mortgage holder cannot redeem it except by bidding at the auction.
The rate of foreclosures has slowed because the critical ones fell early, and the rest dribble out randomly as people lose their incomes.
.
***No, sub prime loans began with GWB. There were no sub prime housing loans available in Carter’s time.***
No, the subprime loans began with Fanny and Freddie. Bush requested oversight on those lib organizations fourteen times, but Congress wouldn’t pass it.
“There were no sub prime housing loans available in Carter’s time.”
.
They were legislated into existance with Carter’s CRA. They slowly increased at first, but accelerated rapidly after Clinton’s reinforcement of CRA.
They were mandated by law, not a deliberate creation by lenders.
.
see post 7 of 10
To focus in even further, it was Barney Frank and Chris Dodd who executed the sub prime loan pressure on the banks. But it was under GWB, not Carter.
I was a real estate broker during Carters years, and no bank in my area would have offered a sub prime loan. Requirements were high, including the evidence of adequate income three years of income tax returns to qualify for a house loan. It was a rough time in real estate during Carters years of l8+%% interest!
Losses have nothing to do with depositors: they accrue to the banks' owners (shareholders) --- retirees, widows, orphans and all those people that have retirement accounts.
The 1998 revision of the Community Reinvestment Act, initiated by Clinton and prepared by Rubin's commission.
Thank you for bringing some sanity to this board: Wall Street only facilitated the demand, as markets are supposed to do, but the creation of bad loans came solely from the government.
Actually the loaned a lot of money under rule of 78, which robbed people blind.
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