Bank Repossessions Of Homes Set New Record In August,2010

Bank Repossession of Homes Sets New Record in August



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On Tuesday September 14, 2010, 3:22 pm EDT
The nation's banks repossessed a record number of homes in August, according to industry sources. RealtyTrac, an online foreclosure sale site, will release its monthly numbers on Thursday, but sources there confirm the number of repossessions will come in just shy of 100,000 for the month.

That is the highest since the site began tracking in 2005. July's repossession number was the second highest on record. The last highest was 93,777 in May of 2010.

Notices of Default, which are the first step in the foreclosure process, are up slightly but mostly thanks to a jump in California, where the numbers had been artificially low of late, as banks tried to modify borrowers.

"With respect to the NOD increase, I think it is the modification redefault wave beginning to build and new modifications slowing to a trickle, indicating banks have lost their primary borrower re-leveraging tool," says mortgage industry consultant Mark Hanson.

Yesterday J.P. Morgan Chase (NYSE: jpm) cited the "shadow inventory" of foreclosed properties as one of their primary reasons for pushing back their expectations for a housing recovery as far as 2014. No question, a growing supply of repossessed properties will put further downward pressure on home prices, especially given the current 12.5 month supply of existing homes already for sale.

The question now is: Where does the government go from here? Some argue that housing needs to correct on its own, without artificial stimulus, as painful as it will be, in order to recover fully. What the Obama Administration has to decide is, will that correction, involving millions of foreclosures, take too large a toll on the greater economy?

Questions? Comments? RealtyCheck@cnbc.com

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85 Comments
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Comments 1 - 10 of 85First PrevNextLast

00A Yahoo! User Tue Sep 14, 2010 11:54 pm PDT Report Abuse
you notice yahoo hides this news and does not put it on the main yahoo finance page?
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00A Yahoo! User Tue Sep 14, 2010 11:53 pm PDT Report Abuse
and with this dose of reality, why is the stock market up 8-10% in the last ten days?

America is broken and the Fed is in charge of giving people the illusion all is fine with his insidious propping up of the stock market with the pomo swaps.
Reply

17Jennifer Tue Sep 14, 2010 04:12 pm PDT Report Abuse
I love the isolationists and libertarians! They just want to be left alone, to "free ride" on all the benefits of living in an organized society. If they had their way, they would be protecting their homesteads, guns in hand, from roving gangs of murderous criminals out to steal anything of value.

Not my idea of utopia. I'd rather just pay the taxes and vote.
Replies (1)

51Rich Tue Sep 14, 2010 03:48 pm PDT Report Abuse
There is no other way but to let housing find it's own level. All the Fed wants to do is let that happen over a period of years, not all at once. This way the virtually free money that they give to the banks (and we do too at no interest) can be lent out to make some money to offset the mortgage losses on their books. It is the Fed's attempt at a controlled crash.
Reply

92OlLady Tue Sep 14, 2010 03:31 pm PDT Report Abuse
People are giving up hope. The summer of recovery was the summer of the bitter truth. The housing market will not recover for decades and there is little point in trying to hang on for things to get better.
Replies (2)

17Andy Tue Sep 14, 2010 03:25 pm PDT Report Abuse
The banks are making a push to grab those homes now that they tricked people into defaulting (that is what the recommended to do in order to modify loans). The banks are quickly running out of time to grab these homes. Homes are now up 4% year-over-year in the overall US.
In my county, the banks are really running out of time because homes are up 15% and people are making current on the payments again to keep the bank from getting the bargains.
Replies (3)

12A Yahoo! User Tue Sep 14, 2010 03:20 pm PDT Report Abuse
Tom-

Taxation without representation? Why don't you vote? In other words voting is the opportunity at gaining representation. There is no taxation without representation in the US unless you live in DC.
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31Tom Tue Sep 14, 2010 03:13 pm PDT Report Abuse
Looks like this blog is being deleted by the nazi machine. Of course they don't want you to know the truth.
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61Tom Tue Sep 14, 2010 03:12 pm PDT Report Abuse
Far too long the government agencies have run amok. Endless taxation and without representation...property tax, income tax, social security tax, on and on and on. It is time to stand up and put an end to our government run of tyranny. Remember something people, government governs ONLY by the consent of the people...time to quit giving them your consent. You have no need to answer to government anything, the most important protection provisions of the people, is the God given right to have society leave you alone. This includes any government agency.
Reply

40Louie Tue Sep 14, 2010 03:09 pm PDT Report Abuse
Don't worry, all the vacant homes will soon be bought when 100,000,000 Chinese emigrate to the US soon.
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