U.S. foreclosures up 58% in first half of 2007

[Horse with no Name]

http://www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/073107dnbusforeclosures.15ed450.html
>>>snip
LOS ANGELES – The number of U.S. homes facing foreclosure surged 58 percent in the first six months of the year, the latest sign of growing problems in the mortgage industry, a data firm said Monday.

In all, 573,397 properties across the nation reported some sort of foreclosure activity in the first half of this year, including receiving notices of default, auction sale notices or being repossessed by lenders, Irvine-based RealtyTrac Inc. said.

That was 58 percent higher than in the first six months of 2006 and 32 percrent higher than the last six months of 2006.
>>>snip
"We could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65 percent," said RealtyTrac CEO James J. Saccacio.

[CoffeeCat]

1. We all knew this was coming...

With the "creative financing" that went on during the past decade or so, it's
no big shock that many people can't pay their mortgages.

We've all seen the signs in front of the McMansions, "Buy this house and pay only $650 per month!".
With interest-only loans and other financially irresponsible loans--people are realizing that
they're in over their heads.

I live in a suburb and my husband I were driving around last night. In several nice subdivisions (homes from 300k-700k),
25-30 percent of these homes were for sale. Maybe this is a peak time to sell/buy? Possibly, this has to do with
people wanting to dump these houses due to the curse of creative financing. I'm unclear what his happening, but it
looked odd to have that many houses with for sale signs on those lawns. We're in Iowa, and I haven't heard
about anything unusual in our real-estate market.

[bluerum]

2. If people had decent jobs it would not be as much of an issue.

They don't - it is.

Gonna be a bumpy ride.

[Wcross]

5. People should buy what they can really afford.

I am a big fan of personal responsibility when it comes to personal finance. Unless you can afford the payment on a fixed rate 30 year loan you can't afford it. Many bought on the assumption that the price would always climb. Unfortunately they made a bad decision. They had the crappy job when they signed the papers.

[bluerum]

7. Or they lost the two crappy jobs or one good job that they did have. eom

[Wcross]

9. That happened to some, others just overbought.

Job loss is a factor in some of the cases. If you bought using an interest only loan for more house than you could afford expecting to make a killing on appreciation I have no sympathy. You rolled the dice and lost, just like the people that lost in the tech bubble a few years back.

[cliss]

3. Ok - here's a horror story -

I have a friend. He bought a house in Seattle for $600,000. Next, he bought a "fixer upper" house for $500,000. It's been a year, and he still hasn't been able to sell the "fixer" house.

His mortgage on BOTH places is $8,000 per month. Not including property tax, sewer fees, etc etc etc.

Unbelievable.

I sense a Great BIG BUBBLE about to burst.

[Johonny]

4. wow what a shock

You mean the housing market driven by record low borrowing rates is going down the *er now that rates have moved up to normal levels, while houses remain at prices between 10-20 time average annual salaries.

[OmmmSweetOmmm]

6. I wonder how many foreclosures on homes of Reservists and Guardsman who are

in Iraq?

[Wcross]

8. Good point.

How many had their pay cut while serving?