The new foreclosure data is hardly a surprise. The bulk of the bad ARMs have been flushed out of the system, but we’re into a whole new round of foreclosures. All of Obama’s tax payer funded ideas for “saving” homeowners have flopped.
Now we’re seeing strategic and unemployment foreclosures. Borrowers who had good credit and adequate income are finding it difficult to rationalize throwing money into a property that has lost as much as 50% of its value–in some markets even more–and still falling.
Other borrowers are now unemployed, due in large part to Obama’s War on Jobs.
Meanwhile, FHA lenders are churning out new future foreclosures with 3% down and shaky credit. Banks trying to unload short sales and repos often pay the 3% along with closing costs giving the buyer zero down loan. We taxpayers will be taking more losses on these.
It’s not rocket science. Until the unemployment situation improves, we’ll see more foreclosures which will drive values down further. Obama is well on his way to eliminating private home ownership.
One Comment
Joy,
I certainly agree that nothing except an improved employment will end the foreclosure problem. Is there any provision in the current law that allows lenders to fund borrows 3% down payment and closing cost? It sounds like it would be outside the law to me, it should be.
I sadly think you may have missed the point. This administration is in my opinion fully committed to the destruction of our society by the dismantling of our financial institutions as well as destroying the value of property/housing. Watch for the lender of last resort to begin to acquire all the housing in the US that is “under water” and rent it back to the occupants. Ah La Public Housing projects. This will be accompanied by some kind of re-valuing loans on the books of lending institutions. and initially allowing them to retain the fictitious value of those loans so as to remain in business. Once this is complete another Savings and Loan move will be taken to bankrupt the lenders and demonize “Wall Street” and Greedy Bankers once again. The HERO will ride in and take them all over to “Save the depositors” We will end up with no way to finance private companies except by borrowing from Government.
I always like to offer a solution. Read Ayn Rand’s “ATALAS SRUGGED”and do a John Galt on them. It will be painful however it is our last hope. “Wait until the lights go out in NYC”
Donald Sheldon