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Foreclosures up a record 81% in 2008
CNN Money ^ | January 15, 2009 | Les Christie

Posted on 01/16/2009 10:10:21 PM PST by Lorianne

U.S. foreclosure filings spiked by more than 81% in 2008, a record, according to a report released Thursday, and they're up 225% compared with 2006.

A total of 861,664 families lost their homes to foreclosure last year, according to RealtyTrac, which released its year-end report Thursday. There were more than 3.1 million foreclosure filings issued during 2008, which means that one of every 54 households received a notice last year.

"Clearly the foreclosure prevention programs implemented to date have not had any real success in slowing down this foreclosure tsunami," said James Saccacio, CEO of RealtyTrac in a statement.

And despite those efforts on the part of both the government and the banking industry to quell the housing crisis, defaults continued to climb as 2008 came to an end. Foreclosure filings were up 17% in December over November, and rose 41% compared with December of 2007.

"The big jump in December foreclosure activity was somewhat surprising given the moratoria enacted by both Freddie Mac (FRE, Fortune 500) and Fannie Mae (FNM, Fortune 500), along with programs from some of the major lenders and loan servicers aimed at delaying foreclosure actions against distressed homeowners," said Saccacio.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Government
KEYWORDS: 2008review; foreclosures
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1 posted on 01/16/2009 10:10:21 PM PST by Lorianne
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To: Lorianne

So, what was that 350,000,000,000 for?..

I bet not a sing DC politician or Bank CEO lost a house.... so I gues it worked a little bit.


2 posted on 01/16/2009 10:13:54 PM PST by Porterville ( I have come here to chew bubblegum and kick ass... and I'm all out of bubblegum)
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To: Lorianne
The next big crisis will be the mortgage companies being stuck with all these forclose houses, which aren't selling.

My guess is the government will buy the homes from them and turn them into government run housing (like in England).

3 posted on 01/16/2009 10:15:53 PM PST by Cementjungle
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To: Porterville

There’s plenty of downside left in the foreclosure market.


4 posted on 01/16/2009 10:16:17 PM PST by Comparative Advantage
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To: Lorianne

My guess is that 800,000 of those families shouldn’t have been in those homes to begin with. Just as Bawney...


5 posted on 01/16/2009 10:19:26 PM PST by DoughtyOne (I see that Kenya's favorite son has a new weekly Saturday morning radio show.)
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To: Lorianne

I’d find it very interesting to see foreclosure data with “no recourse” states stripped out. In those states, most notably California, mortgagees can walk away from upside down houses, with no other consequence outside of a badly damaged credit score. With the ongoing reduction in cost of shelter, it’s rational, if somewhat dishonest, to bail on a losing proposition. Mortgagees in recourse states, on the other hand, are subject to deficiency judgment, and will be pursued for any cost remaining, between the price brought from a REO sale or at auction, and the remaining balance on the note. Wages can be garnished, tax refunds seized and etcetera, so it’s a debt that will follow you until it is paid.


6 posted on 01/16/2009 10:21:43 PM PST by RegulatorCountry
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To: Cementjungle

“My guess is the government will buy the homes from them and turn them into government run housing (like in England).”

I agree. I think that has been the plan by the far left and people like Barney Frank for years. If even one welfare family moves into a foreclosed home in my neighborhood, we’ll be selling and buying about 50 acres of land further out and building a house there.


7 posted on 01/16/2009 10:22:42 PM PST by Comparative Advantage
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To: AuntB

This can’t be good news.


8 posted on 01/16/2009 10:25:44 PM PST by Clintonfatigued (If greed is a virtue, than corporate socialism is conservative)
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To: Lorianne
My heart weeps for anyone who (really) lost a home. There can be nothing more traumatic to a family than being thrown out of their home.

The question is; how do we make these people aware of who and how this was done to them? Acorn, Fanny, Freddy, Franklin Raines, Countrywide, Dodd, Waters, Schumer, Clinton's CRA, Obama....all had a hand in it!

These people's hopes were violated - by the people named above. The have a right to be pizzed. And what does the Republican party do....nothing to convert their anger into votes!

...yes we can be mad at those that gamed the system and bought houses they knew they couldn't afford...but there is political capital to be made here and we aren't doing it.

9 posted on 01/16/2009 10:25:58 PM PST by HardStarboard ("The urge to save humanity is almost always a false front for the urge to rule - Mencken knew Obama)
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To: HardStarboard

With the outgoing administration’s record of touting the “ownership society” as it was, Republicans aren’t exactly pristine on the matter, so ... crickets.


10 posted on 01/16/2009 10:31:09 PM PST by RegulatorCountry
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To: HardStarboard

The GOP was in on it too I’m afraid. GWB pushed hard to make loans available to all Americans. Also, Mr. Andrea Mitchell made it attractive with his actions (very low interest rates) at the Federal Reserve.


11 posted on 01/16/2009 10:31:25 PM PST by Comparative Advantage
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To: RegulatorCountry
As dishonorable as it may be, the "no recourse" clause does say, in effect, "if you can't continue paying, return the house to us and the contract is fulfilled".

If banks do not wish to participate, don't write the loan. Not one bank stood up and complained when these mortgages were being written - they were happy to take the fees and sell the mortgages off to Fannie or Freddie, taking their cut risk-free. And any rational banker KNEW that some of these loans were ridiculous.

12 posted on 01/16/2009 10:43:27 PM PST by ikka (Brother, you asked for it!)
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To: HardStarboard
My heart weeps for anyone who (really) lost a home.

Me too. 4 or 5 of my clients are going through this.

13 posted on 01/16/2009 10:43:41 PM PST by Cementjungle
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To: Lorianne
"There were more than 3.1 million foreclosure filings issued during 2008, which means that one of every 54 households received a notice last year."

So that's less than 2%? That means that over 98% are not receiving foreclosure notices. Let's not forget that the majority of folks over 65 have no mortgage, their homes are paid for.

Let's also ask what percentage of foreclosures were speculative investments that the buyer walked away from after prices started dropping.

"Prices are skyrocketing. Did you see 'Flip This House' last night? We'll buy that shack there with a no interest or a 3-1 ARM, throw on a roof, plant some grass, paint and carpet and double our money in 6 months."

14 posted on 01/16/2009 10:45:04 PM PST by Eagles6 ( Typical White Guy: Christian, Constitutionalist, Heterosexual, Redneck. (Let them eat arugula!))
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To: Lorianne

Glad the tax money went to the banks and congresscritters. God knows the taxpayer doesn’t know what to do with it.


15 posted on 01/16/2009 10:45:22 PM PST by egannacht
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To: HardStarboard

No one forced these people to buy homes they could not possibly afford. They’re the ones who helped put us in this mess in the first place.


16 posted on 01/16/2009 10:58:44 PM PST by Chet 99
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To: Chet 99
No one forced these people to buy homes they could not possibly afford. They’re the ones who helped put us in this mess in the first place.

That's exactly the problem. These people alone are responsible for their decisions. If they were too incompetent to understand the terms of their loan agreement, they had no business buying. Also, for those that bought near the peak, they are also reponsible for their decision to buy after prices had run up so much. Anyone with sense knew it was an unsustained bubble. People need to take responsibility for their own greed.
17 posted on 01/16/2009 11:11:53 PM PST by CottonBall
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To: Lorianne

No big surprises here. Nothing to see everybody, move along.


18 posted on 01/16/2009 11:12:06 PM PST by Force of Truth (Sarah Palin in 2012!!!!!! WOOOHOOOOO!!!!!!!!!)
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To: CottonBall

Besides, they didn’t really lose their home to begin with.. they paid nothing down, never paid principal (interest only)... they’re basically renters who decided to stop paying the rent. No tears or bailouts for apartment dwellers who stop paying the rent, is there?


19 posted on 01/16/2009 11:16:23 PM PST by Chet 99
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To: RegulatorCountry

Bring back debtor’s prisons and put the homeless in nice concentration camps.


20 posted on 01/16/2009 11:19:20 PM PST by Force of Truth (Sarah Palin in 2012!!!!!! WOOOHOOOOO!!!!!!!!!)
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