Foreclosures rise 68% in past year, but drop 10% in November

Joseph Lazzaro — Wed, 19 Dec 2007 10:20:00 EST

Filed under: Other Issues, Economic Data, Housing

Home foreclosure rose 68% in the past 12 months, but declined 10% in November from the previous month, according to date compiled by RealtyTrac, Reuters reported.

Lenders filed 201,950 foreclosure filings in November, for a foreclosure rate of 1 in 617 households.. October's decline follows 2% gains in October 2007 and September 2007, respectively, according to RealtyTrac, Reuters said. The 201,950 foreclosure filed in November 2007 contrasts with 120,334 filed in November 2006, Realty Trac said, The Associated Press reported.

Economist David H. Wang told BloggingStocks Wednesday that investors should not take away from October's monthly decline that foreclosures are trending downward, or that the housing slump is nearing an end.

"It's always good to see a decline in foreclosures, but keep in mind that this is only one month. The market would need to see declines for 3, 4, 5 months before we can begin to state that foreclosures are heading lower," Wang said. "More than likely, with many more resets ahead, the foreclosure statistic is likely to rise."

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Foreclosures rise 68% in past year, but drop 10% in November originally appeared on BloggingStocks on Wed, 19 Dec 2007 10:20:00 EST. Please see our terms for use of feeds.

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Greenspan: Cut home inventories, stabilize the U.S. financial system

Brian White — Tue, 06 Nov 2007 10:23:00 EST

Filed under: Industry, Market Matters, Housing

In case you haven't been paying attention, home sales and mortgage situations are a little touchy in the U.S. right now. Mortgage holders continue to default on their loans, subprime borrowers are no longer able to get loans (at least not with the same favorable terms), financial companies are writing down billions of dollars in losses from backing shoddy mortgages, Merrill Lynch (NYSE: MER) and Citigroup (NYSE: C) have fired their CEOs and home prices are down in many parts of the country.

In other words, the nightmare surrounding the housing and mortgage market is taking a toll in many areas. But if the U.S. can cut its home inventories (using several methods, I suppose), then that alone may be the key to stabilizing financial systems here in the U.S. and in the rest of the world. At least according to former Federal Reserve Chairman, Alan Greenspan. Still, it's quite a mighty prediction, right?

Greenspan connected the subprime lending situation to international financial systems and said that the way to self-correct this system would to be somehow get rid of 200,000 to 300,000 housing units in active sales inventory in the U.S. at this time. He also warned against trying to keep down "asset bubbles" as he spoke to a business leader's forum from Washington. Greenspan also referred to the global economy, saying it is "doing well."

So, is Greenspan right? Can all the excess homes now in the market as a result of the mortgage overextension and lending crisis be sold? Can this clear the air of economic concerns as the housing and mortgage crises are rolling over into other industries and even nations? He's been right before ... many times.

Greenspan: Cut home inventories, stabilize the U.S. financial system originally appeared on BloggingStocks on Tue, 06 Nov 2007 10:23:00 EST. Please see our terms for use of feeds.

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