"Massive wave" of foreclosures coming

[Pale Blue Dot]

The bottom line is that there is a massive wave of actual foreclosures that will hit beginning in April that can’t be stopped without a national moratorium — this wave is so big I would not put it past them trying it.

CA foreclosure background - in mid-2008 the foreclosure wave was artificially held back as a result of the CA law SB1137 enacted in Sept 2008. This also kept NOD’s and NTS’s at much lower levels than the actual defaults that were occurring. Other bubble states and several banks/servicers also went on random moratoria and the foreclosure wave was held back for the past six months. But just like so many other intervention and moratoria in the past, the problem just comes out the other side even more violent than if they would have done nothing. Adding insult to injury, the GSE’s announced this week that they were coming off moratorium, which could increase foreclosures by 20-25% alone.

Particularly interesting to see that higher-end middle class properties are starting to come through foreclosure at titanic levels.

I've recently remarked on falling absolute levels of inventory in housing in spite of accelerating price declines as a possible intermediate-term precursor to a bottoming process. information like this is a good reason to defer judgment for the time being. the foreclosure problem is clearly still accelerating along with price declines, interrupted only by temporary legal injunctions.

http://declineandfallofwesterncivilization.blogspot.com/2009/04/foreclosures-in-pipe.html

[Missy Vixen]

1. K&R, baby

We're waiting for the homeowner paperwork from Obama's program. Still. We're out of work, we're making our payments by the skin of our teeth, but the severance, etcetera, is gone. We're now solely on unemployment.

The news above should freeze the blood. :scared:

[rox63]

2. I didn't realize that you could qualify for Obama's program if you were unemployed

Maybe I should look into it myself. I thought I'd have to be able to qualify for a refinance mortgage to get any help.

[Missy Vixen]

3. He has two different options

We're going with the "we've been making the payments but we're unemployed" option.

I will cross my fingers for you. Do it today.

[flvegan]

4. Good number of banks held off early this year.

First quarter saw a lot of "moratoriums" that are now about to result in a huge wave of new foreclosure filings. We've already been warned here in Florida.

[xchrom]

5. and the hits just keep on coming. nt

[SammyWinstonJack]

6. Lovely, isn't it?

x(

[xchrom]

8. lovely indeed -- i feel like we're being freakin hammered. nt

[leftchick]

17. we are

I am seriously thinking of selling our small home, 1800sq ft, and going even smaller to lessen the mortgage. Shit, but that is the least of our problems.

[DemReadingDU]

7. Why is Obama's economic team misleading us?

They have been on TV almost daily for the past several weeks. They say the economy is looking up, recovery is just around the corner, rebounding in September, economic 'Free-Fall' to end in months, banks earnings are up for the quarter, revival in retail.

Sheesh, who are they speaking to?

With more factories shutting done, unemployment rising higher, massive wave of foreclosures coming, the economy cannot recover until we have factories opening, people working, and unemployment decreasing.

Why such a huge disconnect with what is being said, and what is actually happening?

[KoKo]

9. He's hoping that those who DID THIS...can FIX IT!

It's misguided...but what can we do.. It's his judgment to bring the Bad Guys in to Fix what they DID.

And...that's why he was voted for in enough numbers to overide the Voting Machine Fraud (that our Dems still refused to fix..even in a majority where they could have used the "tricks the Repugs used us" ...and so Obama felt it was better to bring in those who "BROKE IT...to FIX IT!"

That was his call and his judgment. Dems don't get elected because of the "majority." It's about the LOBBYISTS, THINK TANKS...and MEDIA...who now CONTROL it all.

Obama was the BEST WE COULD GET....But, he really isn't controlled by us...he's an "Interim" to preside over the downfall...but to raise the hope from the ashes and hopefully point us in some direction that will be better than what he found ...when HE CAME IN TO his OFFICE.

Our Presidents for DECADES have been CONTROLLED.

Let's give him some TIME....see how he deals with the Criticism from the DEM BASE....He might be good enough to pull out a new Government exposing all the egregious behavior of the past decades.

I'll give him some "TIME" while I continue to rail against what I see as "caving from him" because this is what we HAVE TO DO to honor OBAMA's "CHANGE WE CAN BELIEVE IN." He told us to vote for him because he would honor this. I've not given up on his promise.....yet...yet..

[DemReadingDU]

10. I see what you are saying

As soon as Obama put together his economic team to fix the financial mess, with the same people who broke it, I knew Obama was controlled by the lobbyists. I'm all for giving Obama some time, heck, he's only been President less than 3 months. It's just that there isn't a whole lot of time before the global financial mess blows up. I guess we will have to see what happens then.

[KoKo]

11. We do need to give him more time...but we have to be relentless so he hears us...

It's not easy to do that...because on one hand it looks like some Dems are trashing him..when, in fact, we are giving him huge support by keeping him to what he promised...while knowning it wouldn't be easy for him to make change right after BushCo...

I will remain to have faith in him for the next months..a year...but, it's important we keep after him to honor the "Change" he promised. I know some say that Obama ran as a DLC and that he is obligated to the same folks Bill Clinton was...but, he did really promise us more..and particularly about Iraq and Military and holding folks accountable in Government.

Obama will be held to task for his "package" he ran on. And, those who keep saying he was way to the Right or DLC to some Middle Right...are forgetting the Activists on the Left who had grown who walked the streets for him and donated in small amounts that he's ALSO accountable to.

Obama does owe us...and we need to keep after him to give him some "cover" to honor his promise for change.

[KharmaTrain]

13. Misleading? This Problems Was Known For A While...

This sub-prime reset has been talked about for years. The chart above shows how it peaked last summer...and that started the real downslide in property values and what was left of the real estate market. Things haven't gotten any better since and little has been done to prevent this next reset. There's nothing hidden here...it's just another leak in a very cracked financial dam.

While the market ticked up last month...that's what many are calling a "dead cat bounce". All the money flushed into the system kept it from sliding further but the gain that we're seeing are short term...volume is still way down, many investors are sitting on their money (what money they have left). Credit is still tight as a drum and the ensuing crunch is making things hard on the retail and manufacturing sector. These stories are out there every day. I don't see it being hidden, just not reported. It's not "sexy" enough for our corporate media...whose lame attempts at covering the real causes and impact of what's happening has been cursory at best and sensationalistic at worst.

Throw blame at Congress who enacted that regressive Bankruptcy bill in '05 that opened the flood gates on the sub primes, allowed lenders to raise rates willy nilly and all but asked for this crash to happen. That law needs to be repealed immediately...caps must be put on interest rates and courts must be allowed to adjudicate down sub prime mortgages...keeping people in their homes and stopping the cratering of the home/consumer market.

The disconnect is that the beltway isn't feeling this crisis...not the politicians nor the corporates. They read about it, but their homes and livelihoods aren't directly threatened. They make for good stories and speeches, but ones the lights are off, they go to the drinkie drinkie parties and tut tut about things.

It's up to us to put pressure on our elected politicians...they're the ultimate key as no matter what President Obama tries to do, or not do, any real reform will require Congress to get off their asses. Enough hearings...time to get to real work.

[CrispyQ]

14. "The disconnect is that the beltway isn't feeling this crisis...

not the politicians nor the corporates. They read about it, but their homes and livelihoods aren't directly threatened."

They are all networked & they have an easier time finding another 6-7 figure job than we do of finding a $50k job.

[cagesoulman]

16. But there are real people in foreclosure around the Beltway

People who bought homes in the high six figures to low seven figures in Northern Virginia are now going into foreclosure. Shows you what an exclusive club Congress actually is when even high income employees of the military industrial complex are losing homes and the politicians don't even feel it.

[1776Forever]

12. If you are a veteran contact your local Veteran Service Office. They may be able to help you out.

The VA has a special program that just became available.

Here is the link to find your closest office:

http://www.va.gov/statedva.htm

[SpiralHawk]

15. "Another of our parting Republicon 'gifts' to you Americans. Smirk." - xCommander AWOL (R)

[JVS]

18. Why do you think Santelli and his ilk didn't want to "bail out the losers" except for losing banks?

They're going to make another round of profits on this.