Fed s Cautionary Stance Predictable (Pre foreclosures)
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Source: foreclosurepulse.com
More Trouble for Ed McMahon
Things seem to be going from bad to worse for Ed McMahon, former sidekick to Johnny Carson on The Tonight Show and corporate spokesman for the American Family Publisher s sweepstakes….(read more)
Source: foreclosurepulse.com
Is Eight Enough?
The number of properties with some sort of foreclosure action against them (default notice, auction notice, bank repossession) has consistently risen for the past eight quarters (see chart). While there have been monthly fluctuations up and down during this time period, the quarterly numbers consistently have been up quarter over quarter, and the most recent quarter was no exception, according to the U.S. Foreclosure Market Report released by RealtyTrac today.
And while this upward trend in foreclosure activity is driven largely by a few populous states with volatile housing markets, there’s no doubt the pain is spilling over into many other areas across the country.
Forty-eight of 50 states and 95 out of the nation s 100 largest metro areas experienced year-over-year increases in foreclosure activity in the second quarter,” said RealtyTrac CEO James J. Saccacio in the press release announcing the Q2 report.
State governments that have gotten past the denial stage and actively addressed the foreclosure issue seem to be reaping the benefits of such foresight. One example is Colorado, whose foreclosure rate ranked No. 1 among the states in 2006, according to RealtyTrac. Some state officials initially took issue with the numbers, which engendered an important debate on how to accurately interpret and measure foreclosure data. But ultimately state officials took action by first investigating the foreclosure data themselves and then by working to curb foreclosures. The Colorado Division of Housing set up a foreclosure hotline to help people facing foreclosure. The state government enacted new laws addressing the issue, one of which gave homeowners more time on the front end of the foreclosure process to try to work out a way to stop or avoid the foreclosure.
Colorado’s efforts appear to have had an impact. The state’s foreclosure rate was down to No. 5 in the second quarter thanks in part to a 15 percent decrease in activity from the previous quarter. Activity was still up on a year-over-year basis, but at a much slower pace than the increase nationwide.
Late to the party as usual, the federal government is now trying to address the foreclosure issue as part of the mammoth housing bill making its way through Congress this week. President Bush has said he will sign the bill, which would allow many homeowners facing foreclosure to refinance into lower-cost, government-backed loans. The bill also earmarks $4 billion in grants for local communities to buy up foreclosed properties that may be negatively affecting the communities. Whether this bill will actually slow or stop the trend of rising foreclosures is up for debate. We’ll certainly be watching to see if the third quarter foreclosure numbers translate into a ninth straight quarterly increase.
Source: foreclosurepulse.com
Tags: Auction Notice, Bank Repossession, Colorado Division Of Housing, Corporate Spokesman, Default Notice, Denial Stage, Ed Mcmahon, Foreclosure Action, Foreclosure Data, Foreclosure Market, Issue One, Johnny Carson, Metro Areas, Populous States, Q2 Report, Quarterly Numbers, Realtytrac, State Governments, State Officials, Upward Trend
August 18th, 2008 at 3:08 pm
It’s hard to believe that, after so many years of federal government policy which inflated the housing bubble to such heights, more legislation and policies will help stop the crisis. It’s far more likely that the programs will cost more than they help, and more homeowners will suffer foreclosure due to inflation, which will cause the Fed to raise interest rates, and more ARM loans will go into foreclosure. If there will be any relief, it will probably come from the states or local governments or private organizations, I think.