Mortgage woes push foreclosures to record high

[sabra]

Source: MSNBC/AP

WASHINGTON - The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages.

The Mortgage Bankers Association reported Thursday that mortgage-holders starting the foreclosure process in the April-June quarter reached 0.65 percent, marking the third consecutive quarter that this figure has set an all-time high.

The delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring, rising to 5.12 percent of all loans, up nearly three-fourths of a percentage point from the same period a year ago.

Read more: http://www.msnbc.msn.com/id/20623088/

[frank78]

1. of course...

That's what happens when you have people thinking they can keep flipping properties forever. When properties double or triple in price in 5-6 years, fit will hit the shan eventually, as people's incomes can't keep up with the increases forever. I feel no sympathy for people who are now getting foreclosed because they signed up for ARMs. They need look no further than a mirror for blame.

Markets go up and down, just like the business cycle. The housing market faces a downturn for a few years.

[Xipe Totec]

2. First, welcome to DU

:hi:

Second, I think every person's situation is different.

Although many people fit the description you present, there are many who do not. Not all foreclosures are tied to ARMs.

[pacalo]

3. Welcome to DU, frank78!

Well, the article says the following:

Doug Duncan, the MBA’s chief economist, said the worsening performance was driven by two factors — heavy job losses in the Midwest states of Ohio, Michigan and Indiana and the collapse of previously booming housing markets in California, Florida, Nevada and Airzona.

The Midwest has been hit hard by a heavy loss of jobs in manufacturing, especially in autos and related industries.

This trickle-down economy favored by the Republicans just ain't working.

[pacalo]

4. There's another factor that will come into play in S. Louisiana...

Homeowners insurance has risen sharply while no insurers are writing policies. Three months ago our insurance was increased $300 per month, or $3600 per year. That's like getting a new car payment without getting the car for the money. Since there's a freeze on shopping around for another policy, we have no options.

Like Randy Newman's song says, "They're trying to wash us away..."

[cliss]

5. A comment -

notice the time period: April through June. Guess what happened after June? It got worse. W-A-Y worse.

July-August-September will be stellar. The line is going to shoot up much worse than before.

This situation is like a boat which has started taking on water. They are plugging up the leaks, but there are new ones opening up, all over the boat. The Fed is bailing, but there's a lot of water coming in.....

[OhioChick]

6. Foreclosures Hit Record High With Ohio Leading Way

Source: AP

POSTED: 11:07 am EDT September 6, 2007

WASHINGTON -- The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages and heavy job losses in Ohio and other Midwest states.

The Mortgage Bankers Association reported Thursday that mortgage-holders starting the foreclosure process in the April-June quarter reached 0.65 percent, marking the third consecutive quarter that this figure has set an all-time high.

The delinquency rate, which tracks the number of people behind in their payments but have not yet entered the foreclosure process, also was up sharply during the spring, rising to 5.12 percent of all loans, up nearly three-fourths of a percentage point from the same period a year ago.

Doug Duncan, the MBA's chief economist, said the worsening performance was driven by two factors -- heavy job losses in the Midwest states of Ohio, Michigan and Indiana and the collapse of previously booming housing markets in California, Florida, Nevada and Arizona.

The Midwest has been hit hard by a heavy loss of jobs in manufacturing, especially in autos and related industries.

Read more: http://www.newsnet5.com/news/14057638/detail.html

---

This "booming economy" is killing us....