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[Gailon Arthur Joy]

Talk about excess inventory...at this rate it will ten years to sop up the excess capacity of bank owned property. And what will your home be worth???


Homes facing foreclosure more than doubled in 1Q from 2007
By ALEX VEIGA AP Business Writer

LOS ANGELES (AP) - The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday.

Among the hardest hit states were Nevada, Florida and, in particular, California, where Stockton led the nation with a foreclosure rate that was 6.6 times the national average, Irvine, Calif.-based RealtyTrac Inc. said.
 
Nationwide, 649,917 homes received at least one foreclosure-related filing in the first three months of the year, up 112 percent from 306,722 during the same period last year, RealtyTrac said.

The latest tally also represents an increase of 23 percent from the fourth quarter of last year.

RealtyTrac monitors default notices, auction sale notices and bank repossessions.

All told, one in every 194 households received a foreclosure filing during the quarter. Foreclosure filings increased in all but four states.

The most recent quarter marked the seventh consecutive quarter of rising foreclosure activity, RealtyTrac noted.

"What would normally alleviate the foreclosure situation in a normal market is people starting to buy properties again," said Rick Sharga, RealtyTrac's vice president of marketing.

However, the unavailability of loans for people without perfect credit and a significant down payment is slowing the process, he said.

"It's a cycle that's going to be difficult to break, and we're certainly not at the breaking point just yet," Sharga added.

The surge in foreclosure filings also suggests that much-touted campaigns by lawmakers and the mortgage lending industry aimed at helping at-risk homeowners aren't paying off.

Hope Now, a Bush administration-organized mortgage industry group, said nearly 503,000 homeowners had received mortgage aid in the first quarter. Most of the aid was temporary, however.

Pennsylvania was a notable standout in the latest foreclosure data. The number of homes in the state to receive a foreclosure-related filing plunged 24.4 percent from a year earlier.

Sharga credited the decline to the state's foreclosure relief measures, noting that cities such as Philadelphia put in place a moratorium on all foreclosure auctions for April and implemented other measures aimed at helping slow foreclosures.

Nearly 157,000 properties were repossessed by lenders nationwide during the quarter, according to RealtyTrac.

The flood of foreclosed properties on the market has contributed to falling or stagnating home values, yet lenders have yet to implement heavy discounts on repossessed homes, Sharga said.

Nevada posted the worst foreclosure rate in the nation, with one in every 54 households receiving a foreclosure-related notice, nearly four times the national rate.

The number of properties with a filing increased 137 percent over the same quarter last year but only rose 3 percent from the fourth quarter.

California had the most properties facing foreclosure at 169,831, an increase of 213 percent from a year earlier. It also posted the second-highest foreclosure rate in the country, with one in every 78 households receiving a foreclosure-related notice.

California metro areas accounted for six of the 10 U.S. metropolitan areas with the highest foreclosure rates in the first quarter, RealtyTrac said.

Many of the areas - including Stockton, Riverside-San Bernardino, Fresno, Sacramento and Bakersfield - are located in inland areas of the state where many first-time buyers overextend themselves financially to buy properties that have plunged in value since the market peak.

"California still hasn't hit bottom," Sharga said. "We have a lot of California homes that are in early stages of default that may not be salvageable because either there's no market or financing available, or both."

Arizona had the third-highest foreclosure rate, with one in every 95 households reporting a foreclosure filing in the quarter. A total of 27,404 homes reported at least one filing, up nearly 245 percent from a year ago and up 45 percent from the last quarter of 2007.

Florida had 87,893 homes reporting at least one foreclosure filing, a 178 percent jump from the first quarter of last year and a 17 percent hike from the fourth quarter last year. That translates into a foreclosure rate of one in every 97 households.

The other states among the top 10 with the highest foreclosure rates were Colorado, Georgia, Michigan, Ohio, Massachusetts and Connecticut.
 

[bonnie]

We do not have a right to a home. We have the right to work at an occupation we are qualified in to purchase what is a privilege. Whatever the fault of the mortgage industry, no one dragged the borrower in off the street and held a gun to their head. Why is it the responsibility of the government to bail me out if I went way beyond my means? Many are in trouble thru no fault of their own, but most are facing this crisis because they thought they saw a cheap, easy way to get what they wanted. Now they need a bailout.

We bought and sold numerous houses before my husband retired. First thing we had to consider, especially during good times,if the economy went south, could we make it on less money. Being in the housing industry, we knew how fast that could happen. Second thing when buying a home and signing mortgage papers, was to read and make sure we could understand all the terms.


Being unable to buy with bad credit is not such a bad thing. We bought a home during the late 60's. You needed excellant credit at that time to do so. That was before anyone considered it a right to buy a home and the government to bail them out if they ent in over their heads


I do feel sorry for people that are losing their homes, but a quick bailout and someone else shouldering the responsibility for actions that put most here, doesn't do a whole lot to prevent a repeat.

[Maxey]

We do not have a right to a home. We have the right to work at an occupation we are qualified in to purchase what is a privilege. Whatever the fault of the mortgage industry, no one dragged the borrower in off the street and held a gun to their head. Why is it the responsibility of the government to bail me out if I went way beyond my means? Many are in trouble thru no fault of their own, but most are facing this crisis because they thought they saw a cheap, easy way to get what they wanted. Now they need a bailout.

We bought and sold numerous houses before my husband retired. First thing we had to consider, especially during good times,if the economy went south, could we make it on less money. Being in the housing industry, we knew how fast that could happen. Second thing when buying a home and signing mortgage papers, was to read and make sure we could understand all the terms.


Being unable to buy with bad credit is not such a bad thing. We bought a home during the late 60's. You needed excellant credit at that time to do so. That was before anyone considered it a right to buy a home and the government to bail them out if they ent in over their heads


I do feel sorry for people that are losing their homes, but a quick bailout and someone else shouldering the responsibility for actions that put most here, doesn't do a whole lot to prevent a repeat.

Good points Bonnie.  It is undoubtedly going to be a painful process for the country.  I agree that letting the market sort itself out is the only reasonable option.  It's probably not a bad thing that all the mortgage "professionals" that have been pushing the envelope to qualify unqualified borrowers for loans are now out of work.  I wonder what their next industry of opportunity will be.

Maxey

[bonnie]

There are unscrupulous professionals in any industry and they are certainly paying the price. Same price as the less than diligent home buyer. There will be enterprising creative people that make money from this debacle. The US is creative if nothing else when it comes to that.

I don't remeber the 70's with any fondness as far as the industry is concerned either. Interest rate I believe was something like 21%. But we never considered it a right to buy beyond our means and have the government bail us out or to burden others with paying for our shortsighhtedness. It baffles me that it seems almost unfair now if you have poor credit you can be turned down for a mortgage. In most of our purchases that was a requirement. That was the right of the mortgage company. Now it is my right to demand they accept me if I am less than credit worthy.

It is interesting to watch in our area. Young couples trying to make a go of it. There are those that say "something needs to be done,we can't make it"
There are three on our street. One has a full time demanding job and is now working at Wal-Mart,Fri night, Sat night, and Sun night. Goes to work a little tired on Mon to his regular job after three hours of sleep. But every penny goes towards his mortgage. Making sure that no matter where they need to cut back, there is 50.00 over and above the regular payment every month. Another works full time and delivers pizza weekends and two nights a week. The third is one incident away from being in trouble and can't figure out why the government can't fix this mess. Someone it seems made him take out a very foolish mortgage.