Foreclosures rising with debt, job losses

www.chron.com ^ | 6-12-06 | BECKY YERAK

[Hydroshock]

Foreclosures rising with debt, job losses Adjustable rate mortgages surprise some homeowners

By BECKY YERAK Chicago Tribune

CHICAGO - Foreclosures on home mortgages are on the way up.

Nationally, foreclosures are up 38 percent, higher than in any quarter of last year, property tracker RealtyTrac said.

The numbers are even grimmer in the Midwest. Michigan and Ohio, battered by automotive-related job losses, together recorded 45,000 mortgages entering some stage of foreclosure in the first quarter. Those are increases of 91 percent and 39 percent, respectively, compared with last year's fourth quarter.

There are many reasons for the growing number of defaults, and there are suggestions that the foreclosure trend may soon worsen.

[2banana]

I guess it is better to have a job rather than drive your company into bankruptcy...

[50sDad]

No it's NOT the best economy in twenty-five years as another source reported this am! Nyah, Nyah, NYAH!!!!

[/SARCASM]

[Protagoras]

C'mon, this is a joke right?

Another article?

Are you short real estate or something?

[stylin19a]

sky is falling alert....caveat in article not mentioned....

Although the numbers are higher, they are below where they have been during recessionary periods, said Alexis McGee, president of Foreclosures .com, another property tracker. "It's a big jump but from very, very low numbers on a historic basis," McGee said.

Historically, about 1 percent of loans go into foreclosure, Sharga said.

[Hydroshock]

There are a lot of them out there from many sources. I am just glad I have a strong cash position and a low debt load in these times.

[traderrob6]

If foreclosures are up it's because people overextended with dirt cheap interests rates and "creative" financing. The unemployment rate is at historic lows (4.6%) so what's yup with all these "lost jobs"

[Protagoras]

It seems you have an agenda.

[Mase]

I am just glad I have a strong cash position and a low debt load in these times.

If the American consumer is overloaded with debt, where is the increase in deliquincies? Or, maybe you're just wrong.

[Hydroshock]

And what is that. The only money I have in real estate is my house. I am pulling my money from the market and looking at bonds or cd's for the next 1 to 3 years. What is it? I just thing that hard financial times are on the horizon.

[Calpernia]

ping

[Hydroshock]

Foreclosures are up and the debt load on the average AMerican is at an all time high. Just under 9K.

[roaddog727]

An opportunity for us bottom feeders to bail folks out and pick up property cheap. THen rent it out for a positive cash flow.

[stylin19a]

good question. the article is pretty weak.
none of the stories in the article attribute the foreclosure to creative financing\teaser rates.
( traditional ARMs - even 3 or 5 yr - are NOT the problem. )
All the people in the story seemed to have lost their job and have medical problems as the cause for foreclosure.

[Protagoras]

the article is pretty weak.

If you don't like this article, just go to the posting history of the person who posted it. He has posted dozens more, you are bound to find one you like. Seems like he posts a new one every few minutes.

:^}

[Mase]

Foreclosures are up

Up, how much vs. historical averages?

the debt load on the average AMerican is at an all time high. Just under 9K.

Yet credit delinquencies are down. How do you explain that? Maybe, as you were told in the past, any discussion of debt is meaningless without knowing assets. Net worth is what's left over after all the bills are paid. Have you seen the numbers showing an increase in our household net worth? It's more than doubled since 1995.

In the past four years household debt has increased by $3 trillion. During the same time period, our assets increased by $14 trillion. Please explain to us why that is bad. Maybe you can also explain to us why it's bad for people to borrow more when interest rates are low.

[stylin19a]

that's a fact...

[Protagoras]

I'm starting to smell the odor of a troll. New sign up date and an agenda of gloom and doom.

Let me guess, next up, it's Bushes fault.

[wireman]

There are a lot of them out there from many sources. I am just glad I have a strong cash position and a low debt load in these times

If things are so hunky-dory in your financial universe, why do you bother posting this doom and gloom crap all the time?

Just what is your agenda

[cbkaty]

Really...I am in Real Estate and have never been busier... There will always be foreclosures..they generate a secondary market too...

Lenders that loan to high-risk buyers are still making money...