Home Foreclosures in U.S. Doubled Last Month to Record, Led by California

[Purveyor]

Source: Bloomberg News

Sept. 18 (Bloomberg) -- The number of Americans who may lose their homes to foreclosure more than doubled in August from a year earlier as subprime borrowers with adjustable-rate mortgages saw their monthly payments rise, RealtyTrac Inc. said.

Lenders sent notices of default to a record 108,716 homeowners in August, up from 42,144 a year earlier, RealtyTrac said today. California had 41,714 new foreclosures, the most in the U.S., and Florida was second with 26,203, the real estate data company said.

U.S. economic growth is slowing as the two-year housing decline worsens amid the surge in foreclosures and the collapse of more than 100 mortgage companies, according to David Berson, chief economist of Fannie Mae, the largest mortgage buyer. Federal Reserve policy makers are expected to lower interest rates at a meeting today after last month saying ``tighter'' credit may hurt growth, a Bloomberg survey of 134 economists found.

``This is just the beginning of a wave of new foreclosures,'' Rick Sharga, executive vice president of marketing for RealtyTrac in Irvine, California, said in an interview. ``There are lots of people who bought homes they could only afford at the teaser rates, and now have very few options.''



Read more: http://www.bloomberg.com/news/worldwide/

[MissB]

1. California's foreclosures were higher than the total national figure

from the same month the year prior. Hmm.

Lots of subprime mortgages readjusting. This should ease off in a few years. In the meantime....

[beberocks]

2. And many of the foreclosed houses are going back to the bank

Real estate prices went through the roof here in Sonoma County, thanks to the easy-lending practices of the banks and borrowers willing to sign any loan to get a house. As a result, most of the foreclosures are on jumbo (400K+) loans, and people can't sell them for what they owe. Most homes are going back to the banks. Gee, now where did the banks get all that easy, free money to lend? Other people's bank accounts. I keep wondering if this isn't a setup for another great depression. Banks going belly up, and people losing their money.

[mikeytherat]

3. They didn't just DOUBLE, they increased 260%!

Way to go, Bloomberg. Nice to know that something well on it's way to tripling is called a double.

mikey_the_rat

[CountAllVotes]

4. a friend living down in the east bay ....

the value of their house dropped $45,000.00 in 30-days. Yikes.

:kick: