Unemployment Spike Compounds Foreclosure Crisis

washingtonpost.com:

The country's growing unemployment is overtaking subprime mortgages as the main driver of foreclosures, according to bankers and economists, threatening to send even higher the number of borrowers who will lose their homes and making the foreclosure crisis far more complicated to unwind.

Read the whole story: washingtonpost.com

Comments

[research]

The Bonuses would have completely paid off the "bad" loans.

[dcrinaz]

It was a huge mistake for the Obama administration to not insist that the Senate pass bankruptcy reform with cramdown last April. All these destroyed families could have been saved and kept in their homes. All those homes would have stayed off the market and it would have stopped the drop in home values.

But the Republicans resisted because they prefer banks over people and the blue dogs went along. This was the first strategic mistake of the Obama administration. Because he didn't make the blue dogs toe the line, this encouraged the blue dogs to resist him on health care. I know our president is new as this, but he needs to understand political strategy and tactics much better.

He's the President, for the Lord's sake, not a mediator.

[olephart]

And in other news the reported 0.1% decline in the unemployment rate in July while 247,000 jobs were being lost was due to a statistical assessment that 1,000,000 Americans left the workforce between May and August. Had these workers remained in the workforce (or not removed by the BLS accountants) the unemployment rate would have been 10% in July. Also, this ignores the average increase of 125,000 people per month that is a natural demographic. If you sometimes think things are actually worse than they say you’re right!

[sarabono]

Out of $787 Billion Stimulus,ONLY $1 Billion is dedicated to help Small Business. Small Business is Defined as a firm with 500 or less employees. These firms employ 69% of all American Workers. Of these, Firms with 100 employees or less employ 39% of all American Workers.

So, if you expect the Stimulus to provide new job opportunities for the Average American Worker, you don;t understand the Democrats Stimulus Bill It's emphasis is not job creation but the funding of pet projects and small tax relief ($13 per week) for the average worker.

If the Democrats wanted to really create jobs, they would have put $100 Billion or more into the SBA to help the SBA support the sector of our economy that provides 69% of Private Sector Employment.

Without more Employment, foreclosures will continue to increase, especially in 2011 when the second batch of free money lyre loans and zero down loans come due.

[bighat]

Small business not known for their campaign donations. They just work hard, discover new and better techniques and products. They also hire new people.

[rubrik r]

"Unemploym­ent-relate­d foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes are now worth represent a potentially significant future risk," James J. Saccacio, RealtyTrac chief executive, in a statement.

With the rise in unemployment rates and inability of the helpless borrowers to repay the loans, mortgage delinquencies are on the rise.
The unemployment rate in the nation, which stands at 9.4% currently, may even increase to alarming double digit number making the financial situation even worse for the borrowers to repay. The layoffs of many workers have been permanent and hence, their hopelessness in recovery of the jobs or helplessness to repay mortgage over time looks bleak and they resort to foreclosure than choosing to invest or borrow more money on something that they are not sure whether they would be able to afford in the long run.

Read More: http://www.housingnewslive.com/is-the-housing-market-recovering.php

[BartRoberts]

Ahhh, the legacy of dubya, the man most instrumental for my leaving the GOP, slithers on.

[not going2take it]

*dubya, the man most instrumental for my leaving the GOP*

..E...X...­A...C...T.­..L...Y.!

[bighat]

Congress holds the purse strings. The president can ask but he has nothing to do with surpluses, deficits, or earmarks

[Shammie2000]

Raygun policies as daddy Bush said were VooDoo, however, Raygun has been out of office for over
twenty years and dead for 5 ( I Think) yet, the American public kept electing ReThugs (and more VooDoo) over and over againgo back and review most of the policies put in place in the last twenty
five years and you'll see clearly how we got where we are.

[bighat]

And Reagan and company did it all w/o a single democrat? Amazing how powerful repulibcans can be while the dems just sit home and knit without saying a thing since 1980.

course before 1980 they were running Vietnam

[Ohming]

It is sad to see anyone lose their home. I would bet that at least half (probobly far greater) live well beyond their means and have virtually no savings. This is their nature and it is niether right or wrong and are doomed to repeat the behavoir no matter what help is given.

[research]

The total loans with late payments is around 100B$ TOTAL loan value.

The Banksters BONUSES ALONE COULD HAVE PAID OFF THE BAD LOANS COMPLETELY!

Meanwhile we loaned 24T$ to the very bankster who caused the crash in 2 years.

just 500B$ over 10 years for main street.

Learn to please bankers.

[dzent1]

Build one of these if you're homeless or close to it. I did, and it was cheap and relatively easy:

http://www.instructables.com/id/Build-yourself-a-portable-home---a-mongolian-yurt/

http://www.pbm.com/~lindahl/articles/yurt/

http://www.youtube.com/watch?v=BiZtakOMTMc

[dzent1]

This is how cheap and simple building a yurt can be:

http://www.instructables.com/id/GerTee-Portable-tent-home-made-of-recycled-materia/

This lady lives in Alaska, is legally blind, has a small child, and yet managed to build her own yurt for practically nothing and live sheltered from the harsh elements. You can do it too, if there is a need.

I spent about 120 bucks on 2x4's which I cut on a cheap Ryobi tablesaw, round pool-cover roof from Walmart for 50-100 bucks, canvas side panels soaked in a paint-thin­ner/liquid silicone mix for waterproofing (or round up cast-off vinyl billboards for free, or tarps), flooring structure from wood pallets skinned with OSB, astrofoil for insulation if affordable, or use blankets hung under the outer skin, tension band is from aircraft cable found at any hardware store these days. Easily moved or taken down, the structure can be set up in a friend or relatives yard, no permit necessary.

[Disabled-GMG3]

How did the W04 think work out for ya?

[outnow]

As the economic tide ebbs, the boats of the working poor (making less than $75K per year per family) are going under first. Raygun only spoke of a rising tide lifting all yachts.

There are two Americas - one tiny elite with all the money and political power and then the rest of us.

Since Raygun, the rich got rcher and the multinations outsourced your jobs. The labor-savings from technology were not shared with workers. Free trade and globilization benefits the elites in many countries but not the poor folks.

Jimmy Hoffa urged the labor union to vote for Tricky Dick. Clinton rammed NAFTA through instead of health care. Obama continues all of the Bush agenda, including outsourcing and offshoring and wars for pipelines.

This is where TV has gotten America. Up is down and down is up.

[bighat]

Yes, Reagan was terrible. Let us bring back the policies of Carter.

[Ohming]

The fact is that blue collar jobs were exported. The jobs are still here but filled largely by those not here legally, who use our services and send money home, adding nothing to our economy. They do not come here with your best interest in mind. Yet most on this site support them and then wonder why the jobs are gone. Absolute insanity.

[bighat]

Why would congress support corporations who sent U.S. jobs overseas?

[ClarcKing]

Real economy formation measures must be implemented or the U.S. economy will stop functioning in less than 60 days. There is more than enough urgency here. The monetary financial derivative debt based global economic engine is contracting production and economic activity. A threat to the population as all out war. The U.S. must brake from the debt based monetary system. As per Lyndon LaRouche: put the Fed into bankruptcy protection; get the bailout trillions back; banks that qualify will join the U.S. National Bank. Credits and currency will be issued into the population's physical economy. A job mobilization program must be implemented now. Stop the foreclosures; enact the Homeowners and Bank Protection Act. Healthcare can be reformed by Re-enacting the Hill-Burton Act; the general hospital system. Expand Social Security and Medicaid. Start the construction of 100 nuclear generating and distribution systems; 100 water harvesting and distribution systems. Excess auto industrial capacity will construct a modern mass transit system. Space exploration projects will employ scientists and engineers who will deliver tremendous benefits to the population for generations. Pull the troops from Afghanistan; Stop the Perpetual War policy. Our political leadership is unable to discern financial, economic and political warfare. The Nation and the President must come to the realization that the challenge of confrontation will create success. The United States, a super power, must not submit to being degraded to any degree.

[ThePeacemakers]

Most of the mega corps and other businesses have sold out to international interests...not sure how many are actually "American" owned.

So you could be talking a good deal of "start from scratch" creating more US citizen owned business that have a vested interest in saving the citizens of the US.

[MyGuyO]

Please put a lid on these foreclusures, please.

The equity in our home is going further down into the tank...Have lost over $300K in past few years.

Everyday I read that more foreclosures are on the rise in our area...and of course nationwide.

Please stop!

[bighat]

Is it true that the treasury announces before hand by a number of days their plans to buy X amount of bonds? Then the banks take this announcement buy the bonds and sell them to the govt at a profit?

Is it true that investment companies such as Goldman Sachs do the same things for their wealthier clients and themselves?