Foreclosures Hit Record High in August

August saw more Americans lose their homes to foreclosure than any other month on record, RealtyTrac reported today.

Banks repossessed a total of 95,364 properties in August, a 25 percent increase from the same period in 2009 and a 2 percent increase over this May's previous record. Foreclosure filings of all types, including default notices, scheduled auctions and bank repossessions (the three major stages of the foreclosure process), increased to 338,836 in the month, a 4 percent jump from July.

At the same time, though, the number of default notices that lenders issued to homeowners to initiate the foreclosure process actually went down. The August total of 96,469 was a 1 percent decline from July and a 30 percent drop from August of last year. It's significantly lower than the April 2009 peak of 142,064 default notices issued.

That the numbers of repossessed homes and default notices (respectively the last and first stages of the process) are converging demonstrates that banks are trying to mitigate the flow of new homes to the market. As Bloomberg reported Wednesday, the glut of housing inventory means home prices could decline for at least three years.

Indeed, the number of properties with delinquent loans (30 or more days past due) that aren't yet in foreclosure is currently 4,947,000, or 9.22 percent of all mortgage-financed homes, according to data from Lender Processing Services. The total number of foreclosed properties on the market, LPS says, is 2,038,000.

It's a bleak picture, but glimmers of hope emerge. The majority of Americans (at least, the majority of a 3,399-person sample) think the market has bottomed out, according to a survey released today by Fannie Mae. 47 percent of those surveyed said prices will remain flat for the next year and 31 percent predicted prices will rise.

Even in such trying times, the majority of a 2,967-person sample of Americans say it's "unacceptable" for homeowners to willingly walk away from a mortgage, according to a new survey from Pew Research Center. A whopping 59 percent of respondents condemn homeowners who choose to stop payments on "underwater" mortgages.

According to the RealtyTrac data, Nevada and Florida led the nation in rates of foreclosure filings (including default notices, scheduled auctions, and repossessions) in August, despite year-over-year decreases in activity in both those states. One in every 84 Nevada homes received some form of foreclosure filing, compared to one in every 155 homes in Florida. Arizona, California and Idaho were right behind Nevada and Florida in the foreclosure rankings.

Comments

[bisbeeornotbisbee]

02:18 PM on 09/20/2010

If you want to read something incredibly shocking, go to the web site "Crook and Liars" and read about how buyers of foreclosed property owned by Wells Fargo are often getting screwed to the max.  They want buyers to use their in house title insurance co., and basically all the buyer is getting is a quitclaim deed.  Scarier, a lot of the homes they're selling, Wells Fargo doesn't even OWN legally.  We've all heard about how banks/mortgage companies try to foreclose they cannot produce a title to, and some courts are just allowing them to run roughshod over the delinquent homeowners, and allow the banks to repossess the house, even though the banks, etc., can't provide evidence that they own it.  Remember the article here re the rocket docket foreclosure courts in Fl?  How judges deliberately ignored homeowners' evidence, and granted banks, etc. rights, even when they could provide no evidence, and the homeowners evidence clearly refuted the bankers' assertions?  Well, it's those type of foreclosed homes which are being sold.  The title insurance documents they are making buyers sign basically takes all the buyers' recourse away.  Read the article.  You'll be stunned.

[time4change2009]

10:53 AM on 09/20/2010

With over 2 million in foreclosure and close to 5 million more homes delinquent, the 'expert' survey shows a majority thinks things have 'bottomed out'. Another sign of the true dumbing down of America. What do they think...that the 5M are going to magically get 'undelinquent' ?

[OldTulsan]

10:27 AM on 09/20/2010

Some good news on forelosures...

http://noir.bloomberg.com/apps/news?pid=20601087&sid=a11bqPZVVyLE&pos=1
Ally's GMAC Mortgage Halts Evictions Across 23 States (Update1) - Bloomberg.com

" Sept. 20 (Bloomberg) -- Ally Financial Inc.’s GMAC Mortgage unit told brokers and agents to halt evictions tied to foreclosures on homeowners in 23 states including Florida, Connecticut and New York.

GMAC Mortgage may “need to take corrective action in connection with some foreclosures” in the affected states, according to a two-page memo dated Sept. 17 marked “urgent.” Ally Financial spokesman James Olecki confirmed the contents of the memo. Brokers were told to immediately stop evictions, cash- for-key transactions and lockouts, according to the document, addressed to GMAC preferred agents.

The lender will also suspend sales of properties on which it has already taken possession. The letter tells brokers to notify buyers that the company will extend closing dates by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter..."

The banks don't want more foreclosed properties on their books.

There was a CNN report that said 30% of foreclosed homes are vandalized so bad that they have to be demolished.

[Egalitare]

06:11 AM on 09/19/2010

Just to whom are the mortgage holders expecting to re-sell these properties?

[hrpmap]

02:30 AM on 09/19/2010

http://www.youtube.com/watch?v=ssl5yb7FewA

Do you want to know why the foreclosures that amount to a crises to the average American who has to suffer that loss continues? I have tried to explain the scenario and who it works on these posts but was ignored. So take the time to take a look, once you understand you will know why the banksters are taking homes instead of working with homeowners, they are making killing. 
 
 

[Sarcastic Jack]

06:32 AM on 09/19/2010

Thank you for posting this. I'll be spreading this video.

[hrpmap]

07:07 PM on 09/19/2010

Thank you fanned.

[time4change2009]

11:05 AM on 09/20/2010

Wow. Had no idea HRP...Very good info. Scandalous at best. Clearly explains why the slimey banks DO NOT want to do the modifications. So as The President is desirous of the modifications....the FDIC has simultaneously created an alternative plan for the slimey to make bigger...quicker bucks through FORCED short sales than would be generated through a modification which would help the American homeowner.

[stargazer13]

04:39 PM on 09/18/2010

to think of all the people like me who have lost there very homes because of this economic collapse that was engineered and worked like a charm !

disgusts me to my very being ! it does ! My heart Goes out to all who have been affected and afflicted by this !

and then after all was said and done they slapped each other on the back and gave them selves bonus,s for a job well done !! as millions upon millions world wide have been shoved down the poverty hole !!

[hrpmap]

02:34 AM on 09/19/2010

You think you are mad now check out the link above and the reason the forecolsures continue full steam ahead and you will be furious.

[jabreal00]

12:52 PM on 09/18/2010

The biggest con was the mantra perpetrated of the ownership society. Government meddling with tax credit spurred the run on housing. Since everyone was qualifying for a home and getting mortgages, home prices spiraled upwards out of control. This caused a huge boom in other sectors related to housing. The economy was humming. People felt rich. This in turn lead those to take out equity in their homes. They spent more, causing the economy to be white hot.

Alas it was all an illusion. It was unsustainable. The economy crashed in a calamitous way. Entire industries were decimated. People lost their life-savings, jobs, and houses. It will take 10-15 years to recover. Things will not be the same. I hope this ushers a new level of austerity that lasts.

[TonkaTruck]

08:23 AM on 09/18/2010

Your home is an investment and you should treat it as such; and like any smart investor, YOU SHOULD WALK away from an investment that you are loosing money on.

[chef151]

05:52 AM on 09/20/2010

Agreed. But that doesn't stop bank backed financial pundits from screaming the opposite to try and guilt people into continuing to pay into that investment.

It's simply a contract, you stop paying, they get the asset, no guilt should be involved.

[Mr Hankey]

08:16 PM on 09/17/2010

It's convenient for SOME self righteous conservatives to utilize the tragedy of middle class people who have lost or are likely going to lose their home as a POLARIZING issue to turn Americans against Americans.

(Notice I capped "SOME" because I do understand some conservative view points even though I may not agree with them).

I wonder, have any staunch Conservatives lost jobs, lost homes, or the majority of their retirement funds in this crisis? At that point, do some of them see that we are all middle class Americans who have been duped by the *Global Financial Machine* though a government allowing it to happen?

PS - I am not a tea person, I can't stomach S Palin, and I am not an Obama h@ter. I used to consider myself a Dem, but there are many bad eggs in both parties, and TOO FEW decent people in our government who CARE more about the country than their own selfish gains.

I am a tax paying American middle class person who is appalled with what I see happening to this country.

If only all those who share this view could unite on this, regardless of political ideologies, we might stand a chance to save our country from what I can only call "the shadow elite" for lack of a better description - those that want to control all the money and power.

[Frutti]

01:25 PM on 09/17/2010

That’s the way it is in the land of the Free. No rest for the humble man/family. All this TV personalities, politicians, pundits and the rest of multimillionaires talking over the radio waves are full of SHI^.
They want us to believe they know better and best what is good for America/US and meanwhile the rest of us are going down perdition. What a Joke and the worst is that we pay all of them.

Revolution will not be televised. Get ready people.

[daultman463]

05:43 PM on 09/17/2010

Revolution against who Frutti ? I just want to make sure i`m on the right side my friend.

[hrpmap]

02:40 AM on 09/19/2010

The only revolution that will mean freedom will be the revolution that demands and will not settle for anything less that a complete audit of the federal reserve and then prosecutions of the people who ruined America.

[Simple Living]

01:03 PM on 09/17/2010

Why are foreclosures now taking the backseat? Tax cuts are nice but not near enough. Government needs to tackle this hard and quit dodging the issue of helping the homeowners and not the banks !!

[JoeBlough]

03:17 PM on 09/17/2010

Foreclosure is self-inducted. Live outside your situation, you get foreclosed on. Tax cuts affect everyone, both those who can afford a house and those who can’t. So taxes are more important.

[Jeremy McMillan]

06:17 PM on 09/17/2010

When you say "homeowners," do you really mean "deadbeat homeowners"?

Deadbeats: Sell at a loss and rent a home you can afford. Here's what your home is really worth when you run out of options.

http://thinkbait.aphor.net/2010/09/calculating-bottom-of-residential-real.html

If you are feeling self-righteous, then just abandon the home and declare bankruptcy, rent a home you can afford.

[stargazer13]

04:41 PM on 09/18/2010

:) soooooooo if owning your own home is not going to be the American dream what,s going to be the next slogan

[FollowtheMoneyUS]

11:21 AM on 09/17/2010

Btw, as my username suggests...you really need to follow the money on this issue. Any house with PMI and defaults the banks are 'turning over' to Fannie Mae. Hence, washing their hands of the bad loan (which most likely they created). So, US tax payers are really the ones paying for the banks bad loans and this foreclosure problem. I haven't seen any news story about had we are now Bailing Out the banks AGAIN...via Fannie Mae. If Americans really knew that the banks are screwing us AGAIN...I think a revolution might really take place...

[Jeremy McMillan]

06:20 PM on 09/17/2010

Banks are being "forced" to buy back the mortgages they sold to Fannie Mae with fraudulent applications. All we have to do is expand the definition of fraud they are allowed to use in forcing these banks to buy back mortgages.

[hrpmap]

02:46 AM on 09/19/2010

http://www.youtube.com/watch?v=ssl5yb7FewA

We can only hope, maybe this will get it started.
 
 

[FollowtheMoneyUS]

11:16 AM on 09/17/2010

Those "59% condemning homeowners who choose to stop payments on underwater mortgages" are ignorant, not educated on the issue and most likely not in Florida Cali, or Nevada. Banks and business are defaulting on properties all the time and they have tons of resources unlike individuals. If your house lost 60% of it's value in 4 years (no fault of your own) never to regain it's value you would fall straight into the bank propaganda (and their administration's friends) if you DIDN'T default! You'd be really a stupid financial idiot. Just like those 59%...which btw, probably are the same in that poll which believe housing prices will stay the same or increase in the next years! HA! Americans are really such fools...letting their banks and politicians run all over them.

[batmancw]

11:57 AM on 09/17/2010

Fanned for making immense sense. 
 I get attacked every time I bring it up, yet I gotta agree 100%.

[Patriot86]

02:07 PM on 09/17/2010

Banks walk away from bad debt all the time..sometimes they ask the taxpayer to foot the bill.

[SF TKF]

11:10 AM on 09/17/2010

It’s quite simple. The housing market can’t stabilize until the job market recovers. The more the housing market deteriorates, the more incentive there is for those on the fence to cut their losses and walk away. Put these two facts together, and you have a self-perpetuating downward spiral.

[batmancw]

12:00 PM on 09/17/2010

Yeah, and I think visa-versa is true as well because the job market continues to be affected by the foreclosures due to the fear and unceratinty that they breed.  It's a tough "fix" any way you look at it.

[Jeremy McMillan]

06:22 PM on 09/17/2010

I like to think of it as a steep dive on the rollercoaster...

http://thinkbait.aphor.net/2010/09/new-case-shiller-rollercoaster.html

[JHackson]

10:28 AM on 09/17/2010

It will takes years for the population to catch up with the over supply of housing. We built like nuts because the banks gave out mortgages like candy. And it still goes on. If they know they can sell the debt, they'll give out a mortgage they know won't get paid back. Here's a story about a guy who just got a mortgage and will never afford it:
http://onthefrontlinesofamericanswarwithdebt.wordpress.com/

[Patriot86]

02:09 PM on 09/17/2010

There are enough people for the houses...people used to live in them...they lost their jobs or had one of the fraudulent mortgages sold by ev il banks...it is a matter of Wall Street impoverishing millions of Americans...middle class ones at that- who used to be able to afford a home but now thanks to the gambling street can not....the government should stop paying off on foreclosed homes...make the banks take wha they can on a sale that would end it.