Foreclosures Increase in Third Quarter While House Prices Fall Further
November 12th, 2008
Foreclosures increased by 71% in the third quarter while house prices fell further. In all 765,558 units were under default notice due for foreclosure auction. This is the highest since records have been maintained from January 2005 by RealtyTrac. Foreclosure filings had risen by 3% in the second quarter and fell by 12% from September to August as a result of implementation of state laws to keep people in their houses. Rick Sharga of RealtyTrac commented, “The people living paycheck to paycheck are at risk if they lose their jobs. It will cause more people to lose their homes.” Americans have totally lost their savings habit and they have nothing to fall back on for rainy days. A loan culture has done incalculable damage to the nation and to the individual. The country is now in debt to China and some Middle East countries.
The present foreclosure crisis is the worst since the Great Crash. The situation is further mired by a recession that started during the third quarter and most probably will continue till another year or so according to Jay Brinkmann of Mortgage Bankers Association. In 20 metropolitan regions the price of property fell by 20% – it being the fastest pace that has been ever recorded. The sale of houses that had been previously owned dropped by 32% since September 2005.
The foreclosure issue was a strong matter of concern during the presidential elections. Obama has been supporting an economic stimulus measure to give a kick to the economy. He wants a 90-day hold on foreclosures. McCain has been proposing that the government should purchase and then refinance the troubled mortgages with a buy back programme amounting to $300 billion. Henry Paulson the secretary of the Treasury has been saying the government might opt for buying house loans and other securities to help the foreclosure victims. Meanwhile with the value of property being less than the loan amount many are just walking away from the mortgages. Congress passed a bailout plan amounting to $700 billion for modifying loans and injecting capital into the banks so as to thaw the credit market.
California State has passed a new law that has helped to slow down foreclosure posting during the third quarter. California had so far accounted for 27% of the foreclosure numbers. Default notices dropped by 51% in September compared to August.
- Foreclosed Properties are now Being Handed Over to Habitat
- The Foreclosure Crisis has Pushed Many to Find Other Sources of Lendin
- It Seems that if the Senior Citizens are the Only Ones Who can Tackle this Foreclosure Crisis
- Foreclosures High; Columbus to Receive $23.2 million as Aid
- The Foreclosure Crisis has Added to the List of Minorities – the Brokers of Wall Street
- Foreclosure Alarm Bells are Ringing for the Deaf
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