A record number of homes were lost to foreclosure in the US in the first quarter of 2010. According to RealtyTrac Inc. the number of U.S homes taken over by banks is up 9% the first quarter compared to a year ago. Additionally, households facing foreclosure grew 16 percent in the same period and 7 percent from the fourth quarter 2009. More homes were taken over by banks and scheduled for foreclosure sales than any other quarter going back to at least 2005, when RealtyTrac first began reporting data.
California accounts for the largest amount of homes facing foreclosure... roughly 23 percent of the nation's total.
In my opinion this is just the tip of the iceberg. We have a backlog of properties that the banks have been holding off the foreclosure sale for various reasons, drawn out and postponed foreclosures waiting for short sale approvals or loan modifications, and the avalanche of Pick-A-Pay or Option ARM loans coming to the end of their five year teaser period. The flood of homes will break the dam at some point. Modifications are seeing a failure rate of over 50%, jobs are still being lost, and the 'teaser loans' are unsustainable at their actual amortization payment rate, nevermind the tens of thousands of dollars that most homeowners added to the loans principal amount over the past five years when the payment required didn't even cover interest only on the loan. These loans will give 'upside down' a new meaning. MANY of these 'creative' loans were originated on California properties since our values reached a point of impossibility for most mere mortals to purchase. I can only imagine (and have nightmares about) what the government bimbos will come up with this time in order to attempt to stem this flood. I say, let it rain!! Flush it out and get it over with... enough bailing out; let's flush it out.
What's your view?
Deb Espinoza GRI, ABR, ePro, SFR, CNE
Stage Presence Homes
DebSDRealEstatePro@gmail.com
