U.S. 2009 foreclosures shatter record despite aid

[The Northerner]

Source: Reuters

NEW YORK (Reuters) - U.S. foreclosure actions shattered all records in 2009 and will do so again this year, with unemployment and wage cuts overcoming programs to remedy failing home loans, RealtyTrac said on Thursday.

A record 2.8 million properties with a mortgage got a foreclosure notice last year, jumping 21 percent from 2008 and 120 percent from 2007, the Irvine, California-based real estate data company found.

The loan failure rate -- and thus the fallout for home prices and the economy -- would have been even worse without foreclosure prevention programs and loan processing delays caused by sheer volume, the company said.

In many cases loan fixes don't stick, however, and so a new record of at least 3 million properties getting a filing is seen in 2010. Filings include notice of default, auction sale or bank repossession.

State, federal and private efforts to modify loan terms for at-risk borrowers either don't go far enough or are expanding too late to help many struggling homeowners on a permanent basis, many industry experts and economists agree.

Read more: http://www.reuters.com/article/idUSTRE60D0LZ20100114

[midnight]

1. Timmy Geithner says this about the second lein program...

"With these latest program details, we're offering even more opportunities for borrowers to make their homes more affordable under the Administration's housing plan," said Treasury Secretary Tim Geithner. "Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall. Every step we take forward is done with that imperative in mind."http://www.ustreas.gov/press/releases/tg108.htm

However this program is not off the ground.....An Obama administration plan announced in April to help up to half of all struggling homeowners modify their second mortgages has yet to officially launch, the Treasury Department acknowledged Friday.

The program, a component of the administration's $75 billion Making Home Affordable effort, was supposed to attack second-lien mortgages, which are additional, second mortgages taken out on a home on top of the initial first mortgage. It's like taking out two loans to pay the same debt.http://www.huffingtonpost.com/2010/01/08/nearly-one-year-later-oba_n_416884.html

[FreakinDJ]

3. Sorry - thats just a crock of shit

House across the street that was foreclosed on 6 months ago has BIG PROBLEMS selling. Not because the asking price is so low. (40% of 2006 values) But because NO ONE can qualify for the loan to purchase the home.

The Banks are to blame for the value of your Biggest Investment taking a shit

Oh by all means, - lets saddle the Working Class with even more debt to enrich the Wall St Bankers

[dixiegrrrrl]

5. Did you know the program REQUIRES people to LEAVE thier houses?

From Denninger...he always seems to get the scoop.
"those who cannot qualify for a modification, or who "blow it" while on a trial program and simply don't get a permanent change,
servicers are in fact required to offer short sale or "deed in lieu" alternatives."
No choices here folks - if you're part of HAMP, you are required
to offer expedited and unified procedures for short sales and, optionally, "deed in lieu" programs.

Details:
http://market-ticker.denninger.net/categories/13-Housing

[Mithreal]

2. Moratorium is out of the question obviously. Bankers gotta get paid redundantly.

A Democrat for the people would have put a hold on all foreclosures until the mainstreet recession is over.

Not like we haven't overpaid every real and manufactured loss many times over and will be debt slaves for generations.

[doodadem]

6. We almost qualified

We almost qualified last month to get our mortgage modified, said Wells Fargo. I've spent more time on the phone with these people the past several months than I've spent talking to my mom. Last month, we went thru the whole charade again, and at the end, they said--you are $200 a month short on income. We can't do it. $200 a month. I tried to tell them that the husband makes that much in computer consulting and music gigs. They said doesn't count if you can't verify it.

So......on we roll toward foreclosure. While I'm busting my butt working 12 hours a day in my business.

[Mithreal]

9. Can you go to a local bank or credit union? Acorn maybe?

[Mojorabbit]

7. And the articles

saying the banks are better off foreclosing as they have insurance on many properties and get paid regardless.

[fasttense]

4. With foreclosures so high that we have to look back at the 1st Republicon Great Depression

to find comparable numbers, we get more talk as a solution.

"U.S. lenders permanently modified 31,382 mortgages, or 1 percent, of the 4 million loans targeted under the Obama administration’s foreclosure prevention plan through November, the U.S. Treasury Department said last month."

With only 1% actually being modified, do we really think this is anything more than just talk?

Wall Street gets bailed out immediately, secretly and publicly and Main Street gets talk and more talk, with a few band aids thrown in.

[Mithreal]

8. And what political party was in power in 2009 and 2010?

Those people being foreclosed have family, friends, and acquaintances who will vote.

[boppers]

10. Expect more from 2010-2040. In 2011, commercial properties start, as well.

This is all about bad paper that can take 30-40 *YEARS* to fix. The banks were giving out loans to people with no incomes, no jobs, payable over 36-48 years.

Any Obama admin. "fixes", and complaints, really don't understand the scope of the problem. Obama will have passed into the great veil before this damage is undone.