Posted on 10/28/2010 3:31:17 AM PDT by Son House
"The epidemic is spreading from the states at the ground zero of the foreclosure problems out into areas that hadn't been previously affected," said Rick Sharga, a senior vice president at RealtyTrac.
The trend is the latest sign that the nation's foreclosure crisis is worsening as homeowners facing high unemployment, slow job growth and uncertainty about home prices continue to fall behind on their mortgage payments.
In all, 133 out of 206 metropolitan areas with at least 200,000 residents posted an annual increase in foreclosure activity in the three months ended Sept. 30, RealtyTrac said.
The firm tracks notices for defaults, scheduled home auctions and home repossessions -- warnings that can lead up to a home eventually being lost to foreclosure.
Eleven out of the nation's 20 largest metropolitan areas saw foreclosure activity increase in the third quarter compared to the same period last year.
Economic woes, such as unemployment or reduced income, continue to be the main catalysts for foreclosures this year.
Still, many troubled homeowners have been unable to hang on. As a result, there's been no letup in the inventory of foreclosed homes on the market this year, says John Bauer, an agent with ZipRealty in Seattle who represents lenders selling foreclosed properties.
"It has been on an upward trend curve ever since 2008," Bauer said. "And not just the third quarter of this year, but the last 12 months, it's been on a steady ascension."
Chicago also had the third-highest number of homes repossessed by lenders during the quarter -- 12,568 -- behind the Phoenix metro area's 14,317 and the Miami metro area's 12,963, RealtyTrac said.
Banks have seized more than 816,000 homes through the first nine months of the year and are on pace to seize more than a million.
(Excerpt) Read more at foxnews.com ...
After the recession in 2001 and the first round of tax cuts, economic growth speeded up and is expected to pickup even faster in 2004.
The real annual GDP growth rate increased from 0.3 percent in 2001 to 2.5 percent in 2002. In the third quarter of 2003, GDP grew at a 7.2 percent annual rate. Forecasters are expecting GDP to grow by 4.6 percent in 2004, the highest in 20 years.
2003 and 2004 economic growth levels surpassed Congressional Budget Office (CBO) estimates by 150 basis combined, resulting in $300 billion of additional growth, which is roughly $2,500 per household.
Unless the banks have a long list of foreigners waiting to buy those properties, I’m unsure as to why they want them. When you leave the current owner in the home, at least the bank isn’t liable for the property taxes. Speaking as someone from northern NJ, these run 10K to 15K.
The real story is that a huge number of folks won’t be able to buy another house for seven years because of their credit. The housing market, used or new, is in for a rocky seven-year period.
True, but I think few people are going to be buying houses, and probably for more than seven years, because of this anyway. It is the worst PR a realtor could have, and it goes on and on; there is too much danger in buying a house in this environment. Regardless of how an area is faring economically, the public employees will demand (and receive) large increases in pay; you can add that right onto your monthly mortgage payment. As these taxes increase, your home becomes less desirable to anyone; you end up stuck in a situation where you’ll owe more than a thousand a month on something even when you own it free and clear (and your children are out of the school system). Young people, known for their lack of “committing”, see this for what it is. Since they’ll only be having one child (maybe) and a fish, they don’t need “houses” anymore.
7 years? Foreclosure only stays on your record 3 years and if you are gainfully employed you probably won’t need to wait that long.
No comparison to NJ obviously, but people keep asking me when I’m going to retire? My property tax bill alone, is 2,000 dollars a year, how happy am I that the house is paid for, but we still have to eat, and go places, which pretty much eats up Social security, that is why at seventy plus I’m grateful to the Creator mentioned in the Declaration of Independence, that I still have the ability and desire to work.
Good for you; as a parent of young children, I don’t see myself ever getting ahead, so in thirty years (I’m almost 40 now) I’ll probably be working for you!
We know too many people that are in a state of numbed shock because they are under water. They owe more than their homes are worth.
Those who do not have to move will continue to make house payments. Those who have to move for job reasons are stuck and afraid because of the economic uncertainties. They are afraid of losing their jobs, homes, and entire way of life, thanks to the evil Democrats like Barney Frank and Chris Dodd.
This as serious a crisis as we have ever experienced in 70 years. It is no fun to see all you have worked for melt away, with little hope in the future except higher taxes and more government regulation and intervention in our daily lives.
“Good for you; as a parent of young children, I don’t see myself ever getting ahead, so in thirty years (I’m almost 40 now)”
When I was your age, I dreaded growing old.
Now I am quite happy to be 66, and living in another country.
I can not even imagine the hell I would be going
through if your age, and back in the USA.
My only concern in life is wondering how long social security will last.
Pay up your loot, or default and get the boot... same as it ever was.
LLS
I’ll burn my paid in full home down before any nazi gets it from me... and I will take as many out as I can before they take me out... bank on it.
LLS
I forgot to say..WELCOME TO FREE REPUBLIC.
Having seen your posts for sometime I believe you.
GOOGLE and listen to Randy Kelton in his six pary videos “Taking Back” and you can understand why. Banks get paid on every turn in a default. They stand to make $50-75k on each foreclosure.
Property taxes are “chump change” in comparison to what they make on foreclosures.
Lets, see that would put me pretty close to 101 and I can’t afford to hire anyone on a part time basis now, much less full time. The workers comp, and taxes would eat up anything I make. I am a self employed satellite communications tech that works as a sub contractor for a number of large companies.
Depending on the year, I make in the 20 to 30, thousand dollar range, and support a ton of vehicles and equipment necessary for the job. If I hadn’t been in the business for 25 years, it would be near impossible to start up from scratch for that kind of return.
If I need another person for a job, I can hire day labor, which I have not had to do, or get someone who can call themselves a sub contractor, meaning they pay their insurance, and taxes and are payed by 1099. The business basically supports me and my wife, who also works, and thus ends meet.
Bless you for having young (plural) children. They are worth the effort even if it looks like you aren’t getting ahead, and if I’m still around at 101 and you are needing work, I would or should certainly be willing to share what work I have. I suspect and hope at 70 you will be further ahead than it looks like now.
Having a paid for house is a great advantage financially, except for the scenario stated earlier on the thread where your taxes rise to the level your payed for mortgage used to be. That is what could be a fatal financial reality if government is not reigned in fast.
I forgot to say..WELCOME TO FREE REPUBLIC.
Thanks for catching that, I forgot to look.
Now I am quite happy to be 66, and living in another country.
At least tell us how many miles it is to the nearest US border, if you can’t name the place.
Property taxes are “chump change” in comparison to what they make on foreclosures.
Unfortunately the “chump change” goes on forever, as long as you own it, which makes it in some cases more onerous than the mortgage especially if you don’t work in or own a bank.
I’ll burn my paid in full home down before any nazi gets it from me... and I will take as many out as I can before they take me out... bank on it.
Pray that a moderator deletes this comment of yours. It won't help your case in court.
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