Foreclosures Continue to Rise
Even as analysts tout a stronger economy (using retail sales data and CPI data — and a stronger US dollar — for support), it is clear that the housing market crisis is far from over. Indeed, May saw yet another increase in foreclosures.
CNN Money reports on the continuing, and dramatic, increases in foreclosures:
The housing crisis grew worse in May, as more than 73,000 American families lost their homes to bank repossessions, up a staggering 158% from the 28,548 households that were dispossessed in May 2007.
Foreclosure filings of all kinds, including default notices, notices of sheriff’s sales and bank repossessions, were up 48% from May 2007, according to the latest release from RealtyTrac, the online marketer of foreclosed properties. Filings increased 7% from April.
“May was the 29th straight month we’ve seen a year-over-year increase,” RealtyTrac’s CEO James Saccacio said in a statement.
Florida, California and Nevada continue to be the places where foreclosures see the highest rate, but there are plenty of other markets that are experiencing difficulty as well.
Even with attempts at loan modification, it is clear that it is not enough to stem the tide of foreclosures. Part of that is because mortgage lenders only allow borrowers to use loan modification programs if it will be more profitable for them. In many cases, homeowners can’t even afford the loan modification terms. In such cases, it makes more sense for the mortgage lenders to foreclose on the homes and take the smaller losses.
If you are looking for a loan modification, it is important that you show your lender that you will be able to pay off the mortgage — and that you are determined to do so. Otherwise, you are likely to join the swelling ranks of foreclosures.
Tags: foreclosures, housing market crisis, home mortgage loan, loan modification,
mortgage loan blog, retail sales data, US dollar
June 16th, 2008 at 10:24 am
[…] the faster sale of foreclosures and other properties that are in distress This is mainly because foreclosures continue to rise, adding to the number of homes on the market — many of which won’t be sold. CNN Money […]