Home foreclosures expected to surge in coming months

This should surprise no one. The 2009-2010 wave of foreclosures was predicted quite a while ago in this excellent 60 Minutes report. Will be as bad as '07 -'08 or worse..

Part 1 (about 6 mins):
http://www.youtube.com/watch...

Part 2:(6 mins):
http://www.youtube.com/watch...

It would be nice if the government would not interfere with this process. Let the banks do what's best for the banks. If a family can't afford to be in the house, then they shouldn't be.

While saving people from losing their homes sounds like a good political cause, it is really keeping people in homes they can't afford. Instead of death by 1000 papercuts, let the process play out more sooner than later.

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This a tragic time for many families an unfortunately for many businesses as well. Mortgage lenders and brokers have been forced to reinvent their image, rebuild trust (highly difficult) and become the adviser in their rightful market.

More and more families are going to face many challenging obstacles and this is only the beginning. My heart goes out to these families. If you know people facing these challenges feel free to provide them with quality words of wisdom and be there for them.

PPl who can't afford their homes, ie, live beyond their means will lose their homes. No if or buts. Sometimes, u have to let the market dictate and govt should not interfere with this natural selection process.

It's sad, but that's the way it is. Many ppl put nothing down and walk away if they r underwater. They have nothing invested, so they don't care. They only care if they win.

Let me ask u this. When u go to a casino and roll snake eyes and lose your $, do u ask the dealer for the money back? When u win, do u say, I won, and I want to give u back the $? These homeowners only want their equity to go up. If it doesn't they walk away. They took the risk. It's a bit like gambling.

The Obama administration needs someone who took basic economics! If they would offer a 180-day window of $25,000 tax credits on existing home sales aimed at clearing out the homes moving toward foreclosure they could avoid much of this mess.

STABILIZE EXISTING HOME VALUES OBAMA!!!
Rising home values...
1. Improve bank's existing mortgage portfolio's and financial outlook.
2. Allow distressed homeowners to sell their homes
3. Will not add to the deficit.
4. Does not require government bureaucracy ...
5. Works by itself...
6. Is what Kennedy meant when he said "a rising tide lifts all boats..." Rising home values helps everyone in America, especially the middle class!

Jamolina wrote:

PPl who can't afford their homes, ie, live beyond their means will lose their homes. No if or buts. Sometimes, u have to let the market dictate and govt should not interfere with this natural selection process.
It's sad, but that's the way it is. Many ppl put nothing down and walk away if they r underwater. They have nothing invested, so they don't care. They only care if they win.
Let me ask u this. When u go to a casino and roll snake eyes and lose your $, do u ask the dealer for the money back? When u win, do u say, I won, and I want to give u back the $? These homeowners only want their equity to go up. If it doesn't they walk away. They took the risk. It's a bit like gambling.

My daughter did not live beyond her means. She put 25% down on the home she built after she paid all her student loans and after she paid he credit cards.

Yes!!! Homeowners want their equity to go up!!! If it does, then the bank won't face as many foreclosures which you the taxpayer will pay for. If it does then buyers will come back into the market without costing you the taxpayer anything!

Yes!! Homeowners and anyone who understands basic economics wants to see slow steady increases in the value of residential property in America!

dude wrote:

It would be nice if the government would not interfere with this process. Let the banks do what's best for the banks. If a family can't afford to be in the house, then they shouldn't be.
While saving people from losing their homes sounds like a good political cause, it is really keeping people in homes they can't afford. Instead of death by 1000 papercuts, let the process play out more sooner than later.

Dude... I agree with you except that the problem is being made worse by real estate deflation and has already destroyed all the people who should never have bought a house in the first place! Now it is affecting people that could afford it!

My daughter built a home and put 25% down. She paid off all of her loans and credit cards first. Her mortgage was far less than 25% of her income. She played by all the rules and did not live beyond her means.
Her situation changed. A divorce/cheating husband is not something most people plan for.
She has been trying to sell her home for over 2 years. All she wants is to sell her house and live within her means. Existing homes are now selling for less than the cost of materials and labor to replace them. The market is broken!! It will not get better until deflation is stopped!
Residential real estate deflation is like a hose siphoning water out of a pool. It is sucking the life blood out of America's middle class.

Obamanomics wrote:

The Obama administration needs someone who took basic economics! If they would offer a 180-day window of $25,000 tax credits on existing home sales aimed at clearing out the homes moving toward foreclosure they could avoid much of this mess.
STABILIZE EXISTING HOME VALUES OBAMA!!!
Rising home values...
1. Improve bank's existing mortgage portfolio's and financial outlook.
2. Allow distressed homeowners to sell their homes
3. Will not add to the deficit.
4. Does not require government bureaucracy ...
5. Works by itself...
6. Is what Kennedy meant when he said "a rising tide lifts all boats..." Rising home values helps everyone in America, especially the middle class!

Why wouldn't home prices continue their correction to pre-bubble levels as soon as the $25,000 tax credit expired? All a tax credit would accomplish is that the federal government would lose $50 billion in tax revenues ($25,000 credit per existing home sales multiplied by 350,000-450,000 home sales per month) and the market correction would be delayed by 6 months.

Home prices will continue to fall until they are back in line with the incomes, which means pre-2001 prices for most areas. Unless, of course, the banks lose their collective minds again and start loaning to anyone regardless of whether they can ever pay back the loan (which isn't going to happen for a very long time in my opinion).

Obamanomics wrote:

The Obama administration needs someone who took basic economics! If they would offer a 180-day window of $25,000 tax credits on existing home sales aimed at clearing out the homes moving toward foreclosure they could avoid much of this mess.
STABILIZE EXISTING HOME VALUES OBAMA!!!
Rising home values...
1. Improve bank's existing mortgage portfolio's and financial outlook.
2. Allow distressed homeowners to sell their homes
3. Will not add to the deficit.
4. Does not require government bureaucracy ...
5. Works by itself...
6. Is what Kennedy meant when he said "a rising tide lifts all boats..." Rising home values helps everyone in America, especially the middle class!

Raising home prices do not help everyone. If people need to spend large portion of their income to cover mortgage payments, they have less money for everything else.

This is "Change We Can Believe In". Don't forget the banks are holding millions of foreclosures off the market so the whole our whole economy won't go kaput.

This is "Change we Can Believe In". Don't forget that the banks are holding millions of foreclosed homes off of the market to keep the market from going kaput. Bring the pain!

240,000 doesn't equal the 9 million the admin said would be helped....another failure from Bush to Obama

Foreclosures have been a major issue of the economic recession that has hit all countries across the world. The Bush administration overlooked the foreclosure issues of the average homeowners which the Obama administration is struggling to tackle with various initiatives.
The Office of the Comptroller of the Currency said that among the 34 million loans it tracks, foreclosures in progress rose 22 percent, to 844,389. That figure was 73 percent higher than in the same period last year.
I think foreclosures are triggered by the rising rate of job losses in the nation.
Read read an intersting article on this premise.
http://www.housingnewslive.com/is-the-housing...

This is the second wave of the Obooba financial crisis. The third will happen when the people who were rescued in round one re-default since they should never have owned a home in the program in the first place.

Den C wrote:

This is the second wave of the Obooba financial crisis. The third will happen when the people who were rescued in round one re-default since they should never have owned a home in the program in the first place.

Den C - Check out the new report by the Comptroller of the Currency (US Treasury Department):
http://www.occ.treas.gov/ftp/release/2009-77....
http://www.occ.treas.gov/ftp/release/2009-77a...

On page 6 there is a table showing the percentage of home loans that were modified under taxpayer funded programs that are still current with their payments. Less than 30% of the loans modified in the first quarter of 2008 are still current and almost half are 60 days overdue or back in foreclosure. What is even more amazing -- Only 64% of loans modified in the first quarter of 2009 are current with their payments and more than 20% are 60 days overdue or already in foreclosure! Now our government is opening up the restructuring to loans that are 125% of the home's current value. Do you think those restructured loans are going to default at a lower rate than the 105% maximum loan to value loans in 2008-early 2009? Of course not. And how will eat the difference? The US taxpayer of course. It sure looks like another example of the government throwing our tax money away with absolutely no good effect.

Obamanomics wrote:

<quoted text>
Dude... I agree with you except that the problem is being made worse by real estate deflation and has already destroyed all the people who should never have bought a house in the first place! Now it is affecting people that could afford it!
My daughter built a home and put 25% down. She paid off all of her loans and credit cards first. Her mortgage was far less than 25% of her income. She played by all the rules and did not live beyond her means.
Her situation changed. A divorce/cheating husband is not something most people plan for.
She has been trying to sell her home for over 2 years. All she wants is to sell her house and live within her means. Existing homes are now selling for less than the cost of materials and labor to replace them. The market is broken!! It will not get better until deflation is stopped!
Residential real estate deflation is like a hose siphoning water out of a pool. It is sucking the life blood out of America's middle class.

and the real estate hyperinflation since ~2000 did NOT suck the life blood of America's middle class who just happened to not own homes yet ?