US home foreclosures spiked 81 percent in 2008 despite efforts to slow the "tsunami,"

[Liberal_in_LA]

http://www.google.com/hostednews/afp/article/ALeqM5hWgydhvYBQ0DuLD9f2beRxDuz2fg

Saccacio said the big jump in December foreclosure activity was "somewhat surprising" given the moratoria on foreclosures by both Freddie Mac and Fannie Mae and programs from some of the major lenders and loan servicers aimed at delaying foreclosure actions against distressed homeowners.

"Clearly the foreclosure prevention programs implemented to date have not had any real success in slowing down this foreclosure tsunami," he said.

Nevada, Florida, Arizona had the highest state foreclosure rates in 2008.

[aquart]

1. There were no real efforts. Token pretend efforts.

While they looted the treasury for a last minute bank-buying spree on our dime.

[FarCenter]

2. 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.