Foreclosures up 81 percent: RealtyTrac

[Joanne98]

Source: Reuters

NEW YORK (Reuters) - U.S. foreclosure activity jumped 81 percent in 2008, with one in every 54 households getting at least one filing notice, suggesting various state laws and private programs to slow the process have been ineffective, RealtyTrac reported on Thursday.

Nearly 3.2 million foreclosure filings on 2.3 million properties were made last year, the Irvine, California-based research firm said. Filings include notice of default, auction sale or bank repossession.

"Clearly the foreclosure prevention programs implemented to date have not had any real success in slowing down this foreclosure tsunami," James J. Saccacio, chief executive officer of RealtyTrac, said in the report.

Foreclosure activity did slow in the fourth quarter overall, declining 4 percent from the third quarter, but jumped nearly 40 percent from the fourth quarter of 2007.



Read more: http://www.reuters.com/article/domesticNews/idUSTRE50E1KV20090115

[ixion]

1. "jumped"? poor verb choice, imo... "sky-rocketed" seems more appropriate

81%, after all, is a considerable increase, generally considered more than a "jump."

[midnight]

2. American Tax dollars liberally thrown toward huge bank

give aways.... American Tax payer left to pull himself/herself up by his/her boot straps? This psychological drill that was impressed upon us decades ago has got to end. Working people are not the reserves for the non working when they want to be replenished with spending money.

[FarCenter]

3. What fraction of these are "walk aways"?

In several states with high foreclosure rates, CA, AZ, NV, FL, the homeowner can walk away from a mortgage. The mortgage holder can only get back whatever it can by foreclosing the house.

For example, suppose the homeowner bought a house for $400K with no money down. In today's market is is maybe worth $300K. So the homeowner is $100K "under water".

It is to the homeowners advantage to stop paying the mortgage, live there as long as possible until evicted, and let the mortgage company take the property.

The mortgage company cannot go after the homeowner's other assets, either other houses, business investments, bank and brokerage accounts, etc., and cannot force the homeowner into bankruptcy.

The homeowner would have to be pretty stupid to go along with continuing to pay some high, reset rate on an adjustable rate mortgage instead of getting out of the mortgage.

[Bigmack]

4. What are the banks going to do with the houses? nt