Home foreclosures jump in 3rd quarter
U.S. home foreclosures jumped in the third quarter and banks’ efforts to keep borrowers in their homes dropped as the housing market continues to struggle, U.S. bank regulators said on Wednesday.
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The Next Housing Crisis
By Mike Whitney
Did the Federal Reserve collude with the big banks to hold millions of houses off the market until the Fed finished adding $1.25 trillion to the banks reserves? Did the Fed do this to make it appear that its bond purchasing plan (quantitative easing) was stabilizing prices when, in fact, it was the reduction in supply that stopped prices from plunging? It sure looks that way. This is from Bloomberg News:
“U.S. home foreclosures reached a record for the second consecutive month in May, with increases in every state, as lenders stepped up property seizures, according to RealtyTrac.Inc.
“Bank repossessions climbed 44 per cent from May 2009 to 93,777, the Irvine, California-based data company said today in a statement. Foreclosure filings, including default and auction notices, rose about 1 per cent to 322,920. One out of every 400 U.S. households received a filing.” (Bloomberg)
“Expert” Advice
By Tom Purcell
It’s frightening, if you want to know the truth.
I speak of the reversal of fortunes in the housing market.
Research firm First American CoreLogic reported last week that 24 percent of all homes with mortgages — some 11.3 million — are “underwater,” worth less than what their owners owe on them.
Home sales are tanking, too. New home sales plummeted unexpectedly in January to their lowest level in 50 years.
I witnessed — and successfully avoided — the housing bubble firsthand. In 2001, before the 9/11 tragedy, I nearly bought a half-duplex just outside Old Town, Alexandria, Va., for $165,000.
The owner was eager to sell — there were no lines of people outbidding each other yet — but I wasn’t sure if I’d be staying in the D.C. area, so I passed.
I had no idea that just a few years later, interest rates would rocket downward — that the Federal Reserve would pump an unimaginable amount of dough into the economy to stave off recession.
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