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August Foreclosure Activity Remains Near Record High
According to RealtyTrac, August saw 358,471 foreclosures, a 1% decrease from July but an 18% increase from the prior year: one in every 357 housing units received a foreclosure filing in August.
“The August report demonstrates that there is still an ample supply of properties filling the foreclosure pipeline even while the outflow of bank-owned REO properties onto the resale market is being more carefully regulated,” said James J. Saccacio, chief executive officer of RealtyTrac. “After hitting a high for the year in July, REOs dropped 13 percent in August, but we also saw a record high number of properties either entering default or being scheduled for a public foreclosure auction for the first time.”
The regional commentary indicates that the pain in the big 3 continues unabated, even as the Fed is set to repeat every single one of Greenspan's mistakes:
With one in every 62 housing units receiving a foreclosure filing in August, Nevada continued to document the nation’s highest state foreclosure rate despite an 8 percent decrease in foreclosure activity from the previous month. A total of 17,902 Nevada properties received a foreclosure filing during the month, still an increase of 53 percent from August 2008.
Florida documented the nation’s second highest state foreclosure rate, with one in every 140 housing units receiving a foreclosure filing, and California documented the nation’s third highest state foreclosure rate, with one in every 144 housing units receiving a foreclosure filing.
A 10 percent month-to-month decrease in foreclosure activity helped lower Arizona’s foreclosure rate from the nation’s third highest in July to fourth highest in August. One in every 150 Arizona housing units received a foreclosure filing in August — still more than twice the national average.
Other states with foreclosure rates ranking among the nation’s 10 highest were Michigan, Idaho, Utah, Colorado, Georgia and Illinois.
That foreclosure moratorium sure is doing miracles for pent up demand. If and when it ends, and all those loans marked at par, and moving directly to REO and not pass go, is just the day of glory and crowning achievement to all the efforts Sheila Bair and all those other fine gentlemen in power have put in to make sure the economic reality translates dollar for dollar into bank balance sheet identity (not to mention cash flow statement).
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Maybe the most undercovered part of the realty implosion is the property tax issue. Probably because each state is different. But local budgets boomed with the housing bubble with conveyance fees, ridiculously high appraissals and subsequent increases in taxes and spending and now what? I see people buying houses at huge discounts but if you live in a state where you have to fight for a reval, you could be on the hook for a tax bill based on prices from the peak of the bubble.
Other than that, I'm bullish.
Dixie, Completely agree. For any home owner it's obvious what's happening. There is a whole new wave of forced selling (and in some casese foreclosures) due to the tremendous increase in local property taxes. This is really an unspoken and uncovered problem.
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Dixie, Bullish on what? Prices going up!
My friend, many have no clue as to what is happening and what is in store. There will be blood on the streets. A complete rewrite of economic policies and rules,laws etc.
Just for your info, 40 million Americans WERE living in poverty in 2008. The report is just out. CAn any one tell me what would be the number in 2009?
Unthinkable State of Affairs - US of A. very SAD.
I'm not really bullish on anything, especially housing, I was just being a wise ass.
Well there's not much room for housing to work with pricing structures in the dense population areas. In a normal place like texas or iowa when the economy is good people spread out break up households and prices rise just a bit. Rents go up 10 pecent or so etc. But in the heavily populated areas people are forced to cluster inside houses so much with so many people banding so many incomes together to make living affordable that when you have economic growth the demand goes strictly to larger or more lavish structures with cratering at the low income part. So the lower population areas if they are forced to cluster as is done in the high price areas it will devestate the housing market with houses rotting everywhere. The only thing you can be bullish on in high population areas is slum lording.
OK...the curtains in the house have been on fire for some time now. It has spread to the couch and the smoke has moved upstairs. It's time to burn down the house now. No need to call the fire department, the value of the home is way less than what it was bought for....and less than what is insured for. Let the mutha fucker burn......
Hey Sheila......burn this!
They staged 2 of these option arm time bombs. The first went off during the last crash then there was a year lull of little new mortgages then the banks loaded up the 2nd barrel of the shotgun. There's no chance the banking industry will survive this. Then it's steal rights, steal money in the fog of confusion time. Everything big wants to stomp out competitors or gobble them up if they have people of value.
The system wants to distort something. Either large amounts of population has to die to bring it back into meaningfulness or houses have to inflate while earnings don't or some other nasty or impossible scenario has to occur to bring it back into balance. You just collect the profits of usary, tuck them away in bank accounts to keep things making some semblence of sense and then bring them out to mess with the reality of an economic system that doesn't make any sense.
I have 2 friends, one in Cali and one in AZ, living in homes bought for seven figures a couple years ago. Both were flipper occupiers with Option-ARMs. Now these homes are worth mid-six figures. Neither has made a payment in 9 months. Neither has received a 30-day vacate notice.
Seems to me, the bigger the hit on the loss, the longer the extend/pretend game goes on.
At this rate, these guys might hit a one year rent-free anniversary !! Such a DEAL !!
And the zombies get to play the same game with the CRE junk.
No wonder the banksters make such big money. They have to bury more bodies than Tony Soprano !!
Same here, my friend in Simi Valley, CA has not made a payment on a 500k condo at the peak for about 20 months. Not a single letter just an automated call every few months. I think they will surpass two years of no payments. If the mort 3k X 20 = 60k. They could almost afford a free and clear house in Palmdale, CA. Funny how some get rewarded in this mess...
i go to the auction every month ususally 400 houses are set to go. but not last 3 months eveny bofa chase countrywide citi fith third and wells fargo have cancelled every single home set to go to sale. 85% have cancelled on the entire sale
Speaking of delayed mortgage foreclosures, does anyone have any facts of municipalities delaying tax lien sales ? I know of several properties in my area where the property tax is 18 months overdue, but no action is being taken. Is this another hidden debt bomb ?
The above comments about delays on tax sales and foreclosures suggests nobody wants to book a low sales price. Is that wat they call "bad liquidity"? Guess I'm stuck in my trailer a while.
The comment on property taxes is spot on. Here's an example from CA.
http://hjta.org/california-commentary/bond-bomb
A snippet: "At the local level, bonds are repaid exclusively by property owners. Voter approval of bonds places a lien, usually for 30 years, against property to guarantee repayment.... the Los Angeles school district...has just announced that due to the recent decline in the value of property that serves as collateral for the district's bonds, taxes to cover bond payments will have to be increased. The current rate is $123 dollars per $100,000 in assessed evaluation. The schools superintendent estimates this will go to $205.
That's deflationary right?
"a 1% decrease from July but an 18% increase from the prior year"
Ahh the imagery of sprouting green shoots being immediately incinerated in the raging out of control wildfire.
Pete
yipee.. the market is up again...when will the jenga fall ? and my son keeps asking me why everything is made in China!! I told him because its the promised land - the land that every American will want to live in now !!
What jumped out at me was the fact there were 360k modifiations undertaken last month IN ADDITION to the 300k plus foreclosures. Add those together and we get a big #.
Scary!
What jumped out at me was the fact there were 360k modifiations undertaken last month IN ADDITION to the 300k plus foreclosures. Add those together and we get a big #.
Scary!
What jumped out at me was the fact there were 360k modifiations undertaken last month IN ADDITION to the 300k plus foreclosures. Add those together and we get a big #.
Scary!