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Homes lost to foreclosure on track for 1M in 2010

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posted on Jul, 15 2010 @ 04:04 AM
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Homes lost to foreclosure on track for 1M in 2010


hosted.ap.org

More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.

Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.

"That would be unprecedented," said Rick Sharga, a senior vice president at RealtyTrac.

By comparison, lenders have historically taken
(visit the link for the full news article)




posted on Jul, 15 2010 @ 04:04 AM
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The article goes on to say that the banking industry will not clear backlog of current "distressed homes" until 2013. More than 7.3 million homes are in delinquency.

People are not qualifying for assistance from their lenders, and the federal government's $75 billion foreclosure prevention effort has made only a small dent in the problem.

From what I've heard from the people I know, lenders make it nearly impossible to get assistance if you have any assets left at all.

This is not good news.

hosted.ap.org
(visit the link for the full news article)



posted on Jul, 15 2010 @ 08:17 AM
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Yeah, instead of using those tax-dollars to help free up credit, the banks just bought smaller banks, doing almost nothing to help free up the credit crunch. But then again, what did we expect?

--airspoon



posted on Jul, 15 2010 @ 08:24 AM
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reply to post by airspoon
 


I'm trying to get a loan now. Perfect credit. Government employee. Cash in hand. Still no lender will hook me up. Even though the houses I'm interested in are half of what I could easily afford based on my gross income and my lack of any debts.

Something is up.

A glut of properties on the market and a guy with perfect credit cant get a loan for something he could easily afford making half of what he does.



posted on Jul, 15 2010 @ 08:29 AM
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Not to mention all the derivatives that are based on those properties and still off the books, or marked to model, and the commercial real estate collapse....and the continuity of banking act signed under Bush.

Im hearing road warrior USA in 1 to 3 years from some serious pundits.

Just hearing on the radio how a grow your own food for health and suvival book is a run away best seller....



posted on Jul, 15 2010 @ 10:16 AM
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reply to post by airspoon
 

I guess we expected about what you said. It's funny, just last night, a friend of mine was telling me she was in a mess with a divorce and an upside down mortgage and had no choice left but to sell short on her house. The lender told her they would wash the $60K she was short on out of the funds they received. That was good news for her.

However, that $60K then became income for her on which she now has to pay taxes, probably at a rate close to 50%. That's the bad news. By IRS code she can do that over three years, but her lawyer said her credit will be pretty much ruined over that three years.

Not knowing a lot about this, it sounded to me like the lender takes $60K of the taxpayer bailout money free and clear, and they she gets to pay half of it back to the taxpayers. How is that relief? Do they not have to pay anything back?



posted on Jul, 15 2010 @ 10:18 AM
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reply to post by thisguyrighthere
 

That's insane. What reasons are they giving?

Most people in our area are just trying to "ride it out." I'm thinking that's not going to happen....7.5 million people currently in danger is a lot of people.



posted on Jul, 15 2010 @ 10:28 AM
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Originally posted by ~Lucidity
reply to post by thisguyrighthere
 

That's insane. What reasons are they giving?


First they claim things like FHA and the state version wont cover whatever the property is. Then when I hand them the RSA's stating clearly the properties are in fact covered and qualify they tell me that even though they qualify their financial backer wont approve the loan.

So I get lies. Then I get "because we said so."

The phrase I've been hearing is "an acceptable borrower may not qualify on an unacceptable property" or something like that.

So far no property has been "acceptable." I even asked for a list of "acceptable properties" and the lenders said that was the realtors job. The realtor said only the lender can determine what will be "acceptable."



posted on Jul, 15 2010 @ 10:34 AM
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reply to post by thisguyrighthere
 

Oh. Kind of like only the lender was able to give false high appraisals for the homes they loaned money on that weren't worth it, which got us into this mess?

Have you tried multiple lenders? Like credit unions in particular? I've heard that Chase has not been too bad to deal with too...out of the bigger banks that is.



posted on Jul, 15 2010 @ 10:35 AM
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"Welcome to the United Snakes, land of the thief's, home of the slaves"

The banking / lending industry is disgusting. Like seriously disgusting. A cousin of mine used to work in the sub prime mortgage industry a few years ago. He told me his bosses basically would force him to approve loans, even when people were dead broke and had no income.

I myself used to do some shady work for a company that would push mortgage refinancing. That industry was booming around 2003-2004. Now, that boom has caused so many people to have their lives destroyed.

Did people borrow beyond their means? Sure they did. But the buck has to stop somewhere, and it should have stopped with the banks for actually LENDING that money. Money in which they never had to lend in the first place (I won't get into how banks just magically create money for loans.. just google it).

When people start falling behind, getting foreclosed on etc... the government throws a trillion dollars at the banking industry.. and a measly few billion to help foreclosures. And then they TAX us on it as income!!

What happened to the American dream?



[edit on 15-7-2010 by DerekJR321]



posted on Jul, 15 2010 @ 10:35 AM
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Wow! This is sad.

It is going to take me several days to pray a million prayers but who else is going to do it?

When is time to take arms against these Armani wearing thiefs?



posted on Jul, 15 2010 @ 10:37 AM
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reply to post by ~Lucidity
 


Yeah, I've gone from small CU's to small local banks to big national banks to shady-as-hell private types and it's always the same.

They seem to all borrow from the same couple of sources too. Franklin American came up more than once.



posted on Jul, 15 2010 @ 10:54 AM
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reply to post by thisguyrighthere
 


Thanks for taking the time to communicate your experience...to me this says more than any other report.

I am guessing banks right now dont care about a whether you are a safe risk or not, its all about sitting on the cash reserves. I just read an article about nearly all business's in all different sectors sitting on cash reserves and not re-investing. For banks that means, no loans.

And it further instills in me that this fact, in conjunction with no jobs, and no "goods' or "wares" that the US produces, means we are only beginning to see the start of how hard things are going to get in this country.

I wish I knew some way to help turn this all around.



posted on Jul, 15 2010 @ 11:13 AM
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Originally posted by DerekJR321

Did people borrow beyond their means? Sure they did.


I have to say that you are so right that this did happen. There was some pretty serious encouragement from the lenders. When my husband and I bought 10 years ago, they 1.) approved us for almost double the amount we asked for, 2.) inflated the appraisal by almost 150% of the sales price, and 3.) put a huge push on us to take a 125% loan. And they had help from the real estate agent too. And of course the appraisers. They were all in it with the sales pitches.

We didn't take them up on this because it didn't feel right or make sense for us. But I think a lot of people did. Some you should have known better and some who just didn't. I mean when everyone involved in selling you a house is talking the same thing, and if you were new at home buying...

[edit on 7/15/2010 by ~Lucidity]



posted on Jul, 15 2010 @ 11:26 AM
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pretty serious encouragement from the very lenders


And society as a whole.

I am 37 and I have never had a mortgage, nor do I have any desire for one, this fact makes me an anomaly amongst my peers.

I lived in Switzerland for a few years before I moved to the UK. People in Switzerland don't "own" their homes. They rent, and they are perfectly happy renting their whole lives, home ownership is just not very common amongst the Swiss. And yet they have some of the highest quality of life I have seen in all the places I have seen.

Here in the UK, as soon as someone graduates from University ( usually with a useless degree and 30K in debt) they are expected to "grow up" and become home owners.

Home "ownership" is equated with maturity and success. Seems the only ones who really benefit are the banks.

Happy renting. No mortgage, no debt, nothing to tie me down to this one place where I may not stay, no worries over making payments I may be able to afford now, but what happens if I get laid off?

You only "own" your home as long as you make the payments, kinda like renting!



posted on Jul, 15 2010 @ 11:31 AM
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reply to post by Merigold
 


I didn't know that about the UK, but that sounds so similar to here in America. Your expected to go to college for at least 4 years out of high school, become thousands of dollars in debt, and buy a house... because that is the adult thing to do.

Unfortunately where I live (Long Island, NY)... we are listed as the 2nd most expensive place to live (next to Manhattan). The average home price here is $350-$450k. And thats for a regular old 3 bedroom ranch. Anything beyond that and your talking $600k+. And believe me, the salary in NY does NOT match the cost of living. So many young people are literally fleeing NYS because it is just too expensive to ever even dream of owning a home. And renting isn't really an option either. I used to rent a 1-bedroom apartment and it cost me $1300 a month not including utilities. A 2 bedroom? Your getting up into the low $2k range. Its honestly not fair at all.



posted on Jul, 15 2010 @ 12:20 PM
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Originally posted by thisguyrighthere

First they claim things like FHA and the state version wont cover whatever the property is. Then when I hand them the RSA's stating clearly the properties are in fact covered and qualify they tell me that even though they qualify their financial backer wont approve the loan.

So I get lies. Then I get "because we said so."

The phrase I've been hearing is "an acceptable borrower may not qualify on an unacceptable property" or something like that.

So far no property has been "acceptable." I even asked for a list of "acceptable properties" and the lenders said that was the realtors job. The realtor said only the lender can determine what will be "acceptable."



You problem may be that your Real Estate Agent is working with bad information. You cannot know a home is FHA qualified until there is an inspection. It's the same thing with USDA and VA. They send someone out to look at it. You can just counteroffer your seller and make them repair it. That's what my husband and I did. Once the repairs are done they just send someone back out to look at it and if it's done, you are good. Momma says (she sold houses) most RSA's don't know know for certain if they qualify and many RAS's will just put yes on the listing not knowing either way.

As for the foreclosure bit, I did some research myself before i bought the home we are closing on tomorrow. Most of the foreclosures are concentrated in 5 states and 35 counties within those states (and that number is over 70%). The rest of the foreclosures are spread throughout the other 45 states. Yes, it's bad..if you live in those 5 states.
www.realtytrac.com...

Your state looks pretty good.

I'm not sure where trying to get a loan but you might consider going to a mortgage broker. A lot of people have better luck with that. They underwrite the loan and then sell it off to a bank.

Edited cause I can't type today and my head is really stuffed.


[edit on 15-7-2010 by antonia]

[edit on 15-7-2010 by antonia]



posted on Jul, 28 2010 @ 11:59 PM
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Update: Foreclosures up in 75 percent of top U.S. metro areas

"We're not going to see real price appreciation probably until 2013," said Sharga. "We don't see a double dip in housing but we think it's going to be a long painful recovery for the next three years."

Nine of the 10 areas slammed hardest by the foreclosure tidal wave improved from the first half of 2009, suggesting a peak at rates that are still up to five times the national average,

Cities with the 20 highest foreclosure rates were all in Florida, California, Nevada and Arizona.







 
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