How did that happen you ask? Simple, the falling price of housing exasperated sales of housing, because everyone figured it would keep falling. Construction stopped. Unemployment rose. Joblessness increased and housing prices kept falling, all prices, all housing with or without a mortgage. Local tax receipts went down, federal deficits increased, joblessness ratcheted up and housing prices further declined.
You drank the Koolaid served up by the banking lobby. Don't let them have to face the reality and adjust their loans to real value. No, you gave the bankers a war chest to continue their interests and maintain the myth of their solvency. They will be fine. You however have had your wealth crammed down, your home, your 401k, your stocks and probably the value of cash.
You let the banks make their problem your problem with the help of your masters and rulers. Sweet. Keep on foreclosing on the bums.
Foreclosures up despite moratorium and legislative efforts
TEL AVIV (MarketWatch) -- U.S. properties in the process of foreclosure in the second quarter rose to a record quarterly level of nearly 890,000, RealtyTrac reported on Thursday.
The total is up 11% from the first quarter and 20% from the year-earlier period, the Irvine, Calif., online marketplace and research firm reported.
In June, properties in foreclosure totaled 336,000, exceeding 300,000 for a fourth month and driving the second-quarter total to the highest level since RealtyTrac began its survey in the first quarter of 2005.
As of June 30, nearly 1.53 million U.S. properties were subject to a default notice, auction-sale notice, or bank repossession, RealtyTrac reported.
Nearly 1.2% of all U.S. housing units -- 1 in 84 -- were subject to a foreclosure filing in the first half, RealtyTrac reported.
Despite an industrywide moratorium on foreclosures earlier this year plus legislative action and more efforts by lenders to modify the terms of mortgages, "foreclosure activity continues to increase to record levels," RealtyTrac Chief Executive James J. Saccacio said in a statement.
People who've lost jobs "account for much" of the increase, and borrowers who owe more on their mortgages than their homes are worth represent a significant risk going forward, he said.
"Stemming the tide of foreclosures is a critical component to stabilizing the housing market," and lenders and the government must find new approaches to the issue, the executive said.
In the first half of 2009, properties in foreclosure rose 9% from second-half 2008 and 15% from the year-earlier period, RealtyTrac reported.
Nevada was the state with the highest first-half foreclosure rate, 1 in every 16 housing units, RealtyTrac reported. Foreclosed properties totaled more than 68,700, up 23% from second-half 2008 and up 61% from first-half 2008.
Arizona was second, with 1 in every 30 properties in foreclosure, and Florida was third, with 1 in 33, RealtyTrac reported.
In absolute numbers, California was No. 1, with more than 391,600 properties subject to a foreclosure filing. That's 1 in every 34 of the state's housing units, which is the fourth-highest rate among the states. The total was up 14% from second-half 2008 and up 15% from first-half 2008.
Florida was second, with more than 268,000 properties, and Arizona was third, with nearly 90,000.