Home foreclosure filings in the United States hit a record 1.9 million in the first half of 2009, according to RealtyTrac –-- on more than 1.5 million properties. Again, unemployment is one of the primary culprits, as a lack of income makes it pretty tough to bring a loan at risk of default up to date. The number of filings is up 9% from the second half of 2008 and up almost 15% from the same period last year.
Last month, foreclosure filings were up 5% relative to May and up 33% from June 2008. The month's action was the third highest on record, and it was the fourth month in a row in which there were filings on more than 300,000 properties.
In an effort to help homeowners, some loans were frozen temporarily last year under a variety of state and federal programs, but most came to a close in March. That's when the deferred foreclosures, essentially, started to work their way through the system. For the half, one in 84 mortgage-bearing households had at least one foreclosure filing.
Supporters of government aid for homeowners indicate that it takes time to get support programs off the ground – and that much of the benefit could come later. Opponents, though, say that they came too late to help those in the direst of circumstances.
Meanwhile, mortgage lenders and borrowers have made some progress in modifying loan terms, but there are only so many ways to do this when unemployment is on the rise.
RealtyTrac believes that there will be four million foreclosure filings this year on 3.2 million mortgage-bearing households. Essentially, the second half will show little change. Compared to 2008, this year will be brutal, with foreclosure filings expected to be up 33%. A typically year has around 800,000 foreclosure filings.
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Reader Comments (Page 1 of 1)
7-17-2009 @ 12:03AM
peterhailey said...
If everyone who owned a home is foreclosed upon and lose their homes than the foreclosure rate will fall to zero. Of course the rental management companies will raise rental rates and another wave of renters evictions will come. When a person working in a full time job must make the decision to either pay rent or buy food it is time for a new government.