A total of 937,840 homes received a default or auction notice or were repossessed by banks, a 23 percent increase from a year earlier, the Irvine, California-based seller of default data said today in a report. One out of every 136 U.S. households received a filing, the highest quarterly rate in records dating to January 2005.No longer the sub-prime domain's problem, foreclosures are now the problem of the prime loan crowd.
The delinquency rate for prime loans rose to 6.41 percent in the second quarter from 6.06 percent, the Washington-based Mortgage Bankers Association said Aug. 20. The share of prime loans in foreclosure increased to 3 percent from 2.49 percentWith an increasing rate, the problem is not going to end anytime soon.
Speaking of rising rates...
Foreclosure filings rose 5 percent nationally in the third quarter to the highest three-month rate in almost five years, RealtyTrac Inc., of Irvine, Calif., reported yesterday. [Ref.]Not all states are impacted equally. Some were crazier than others.
In both Arizona and California, one in 53 households received filings. They were followed by Florida, at one in 56, and Idaho, at one in 97. Utah, Georgia, Michigan, Colorado and Illinois rounded out the top 10 highest rates. [Ref.]Buckel up boys and girls, it gets bumpy from here.
The government's only power over the economy is to screw it up. Higher taxes. The promise of higher costs via the health-care takeover. Not to mention the sinking dollar... you can't print money forever; sooner or later people will mover off the dollar to the Euro or something else.