Foreclosure filings nearly double

Foreclosure filings nearly double

By ALEX VEIGA
AP Business Writer


LOS ANGELES (AP) -- Foreclosure filings across the U.S. nearly doubled last month compared with September 2006, as financially strapped homeowners already behind on mortgage payments defaulted on their loans or came closer to losing their homes to foreclosure, a real estate information company said Thursday.

A total of 223,538 foreclosure filings were reported in September, up from 112,210 in the same month a year ago, according to Irvine-based RealtyTrac Inc.

The number of filings in September was down 8 percent from August's 243,947, the firm said.

Despite the sequential decline, the September figure represents the second-highest total for filings in a single month since the company began tracking monthly filings two years ago.

"August was an extraordinarily high month for foreclosure activity, so some falloff was almost predictable," said Rick Sharga, RealtyTrac's vice president for marketing.

The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages.

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They were falling all over themselves about how the decline from August, means we've possibly bottomed, and it's going to improve from here.

Got A Bridge??

I heared it from Dear Leader.

I heard someone on the news say this issue is probably near its end. But, how is that? If loan sharks continue to sell predatory and interest only loans it would seem to me that this kind of thing will just keep going and going. :shrug:

(OK, he won a nobel, but so have a bunch of chicagoans) on air, about the mortgage fiasco.

He took apart the problems, explained it in exceedingly simple terms, so even I got it, and then he explained how it will get much, much worse, than better for the next two years.

The future problem is simple. Rather than go through steady, secure, and safe FHA loans to those in need, they ignored risk, and sold 2 yr capped, and 18 year fluctuating mortgages to people. period. to anyone. period. anyone at all. no credit, poor credit, bad credit? it mattered not.
THEN, they package those loans, and sell them as securities. (they win huge profits)
THEN the securities get bundled with other investments. (The first tier buyers win big)
THEN the hedge funds buy in and out with half a trillion in investment power, pushing out some, and favoring others.

Even if the market collapses (as it is) the hedge funds survive and thrive. The eventual securities owners made a bundle, but face some risk. On the other hand, the homeowner gets a good rate for 2 yrs, then pays 5-7% ABOVE FHA rates. Some jump from 4.5% to 14%. That's approaching credit card numbers. and that is devastating to the poor and lower middle class.

Those contracts, far over 500,000 of them, were sold starting in 2006 to about 2 months ago. Some were refinance contracts, others were new contracts. In two years, we are talking more than 2,000,000 additional homeless, with the financial crash that will follow.

I think homes are going to be repo'ed as often as cars or even more.

The lending industry sees all the profit they make in those loans, so why not exploit the sleeping giant of the mortgage industry.