Thread: Foreclosures hit all-time high

More home owners than ever are losing the battle to make their monthly mortgage payments.

Over 900,000 households are in foreclosure according to a survey by the Mortgage Bankers Association, representing 2% of all mortgages. That's the highest rate in the report's quarterly history. Another 381,000 households, or 0.83% of borrowers, saw the foreclosure process started during the quarter, which was also a record.

Additionally, the number of mortgage borrowers who were over 30 days late on a payment in the last three months of 2007 is at its highest rate since 1985.

Some areas are hit harder than others:

"In states like Ohio and Michigan, declines in the demand for homes due to job losses and out-migration have left those looking to sell their homes with fewer potential buyers, particularly with the much tighter credit restrictions borrowers now face," said Duncan.

"In states like California, Florida, Nevada and Arizona, overbuilding of new homes created a surplus that will take some time to work through."

But over all the economy is sound - or so they keep saying.....

http://money.cnn.com/2008/03/06/real...ontinue_climb/

Thats what they keep saying, although growth has slowed to a point where it can't keep up with inflation. Hence the devaluation of the dollar. It doesn't look good but then again you can't be in the lead all the time

We have only just begun to see the collapse of our economy. We aren't talking recession, but depression. Not only are foreclosures at an all time high, but so are credit card defaults and auto loan defaults. Gold has increased OVER 50% in value in the past six months which signifies a tremendous weakening of the U.S. dollar as people flock to put their wealth where it's safe.

The housing market and homes as ATM's were the only things keeping our economy afloat for the past 8 years, but without that money flooding into the economy everyone will suffer. Every single business will be effected. You can only Rob Peter to pay Paul for so long before it finally has to stop.

We have only seen the tip of the iceberg.

When exactly did the Mortage Bankers Association first start reporting such things? How does it stack up against previous economic hardships endured by this nation prior to their reports? Sounds too much like all the other extreme titles to reports and such with less substance when viewed through a clearer scope in regards to history.

Originally Posted by Dispondent

When exactly did the Mortage Bankers Association first start reporting such things? How does it stack up against previous economic hardships endured by this nation prior to their reports? Sounds too much like all the other extreme titles to reports and such with less substance when viewed through a clearer scope in regards to history.

Yeah but this is heavy. These mortgages that aren't being paid off are the financial basis for quite a few things in our country. The banks that own these notes take the payments and use them for overhead or investments. They aren't seeing this cashflow so investments (and growth) slow and fail. It's not just the housing market that takes a hit, these are the largest financial companies in the world failing because of bad practices. They've been going on for years and it will take a while (and a few more corporate bankruptcies) to root out the problems

Originally Posted by Ron_Paul_AZ

Yeah but this is heavy. These mortgages that aren't being paid off are the financial basis for quite a few things in our country. The banks that own these notes take the payments and use them for overhead or investments. They aren't seeing this cashflow so investments (and growth) slow and fail. It's not just the housing market that takes a hit, these are the largest financial companies in the world failing because of bad practices. They've been going on for years and it will take a while (and a few more corporate bankruptcies) to root out the problems

That may be true, as to what is all effected, but still 900,000 homes is a pitance of overall homes in the US, for arguments sake say that each of those homes housed 4-5 people, that is still only 4.5 million in a country of 300 million, around 1.5% of the total population. There is much more involved in this than mere forclosures, because the numbers don't add up. 2% of all mortages should not tank the entire industry, so what is tanking the entire industry? That is really the question we should be asking. Are these lending institutions thowing all of their bad investments in with the sub-prime fiasco? If it is going to come down to tax payers bailing these bastards out I want a hell of a lot more information as to what's going on than is readily available at the moment.

Shit guys.

Foreclosures mean one thing: Opportunity!

Get out there and snap up those foreclosed homes before someone else does.

If nothing else, the OP indicates that there's nearly a million families seeking a place to rent.

Those people so stupid they greedily took mortgages they couldn't afford? Serves them right to get foreclosed. Forget 'em.

Now we are going to hear about all the sub prime borrowers and how they have no place in society. Well I am going to head that off at the pass and state that prime loans are in peril. People who have owned their homes for decades are losing them. It is a basic problem, inflation. We have been told, and many fell for it, that inflation was at 2~3%, well that was a LIE. Inflation has been in double digits for years, just look at your food bill before you say I am wrong. But hey take food off the inflation index and poof, problem solved, well almost. The government has removed many things from the inflation index to hide the problem. Well folks you can hide an elephant for only a short period of time, sooner or later it will be found. Well the elephant is out of the bag and your seeing the result from the lies. What is worse the government will not admit that they lied, hell no, they will compound the lies with all new lies. Gee no wonder I hate these pukes!

Bush Administration Hides More Data, Shuts Down Website Tracking U.S. Economic Indicators

Put the blame where it belongs please!!!

Originally Posted by Freedom for All

Shit guys.

Foreclosures mean one thing: Opportunity!

Get out there and snap up those foreclosed homes before someone else does.

If nothing else, the OP indicates that there's nearly a million families seeking a place to rent.

Those people so stupid they greedily took mortgages they couldn't afford? Serves them right to get foreclosed. Forget 'em.

if only i had the $$

Originally Posted by Freedom for All

Shit guys.

Foreclosures mean one thing: Opportunity!

For some people that's 100% correct, but the overall softening of the economy without this artificial money being pumped in is a slowdown which will effect everyone.

Get out there and snap up those foreclosed homes before someone else does.

You'll only continue to lose money if you do that right now. Inventories show no sign of doing anything other than continuing to grow.

If nothing else, the OP indicates that there's nearly a million families seeking a place to rent.

If they couldn't make the payments buying the home what makes you think renting the home out on top of insuring it and management costs not to mention continuing declining value would be a smart move?

Those people so stupid they greedily took mortgages they couldn't afford? Serves them right to get foreclosed. Forget 'em.

I have no sympathy for those people either, but that doesn't negate the effect it's having on the economy.