Welcome to the American Revolution II

Welcome to the American Revolution II
But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security.
"We face a hostile ideology global in scope, atheistic in character, ruthless in purpose and insidious in method..." and warned about what he saw as unjustified government spending proposals and continued with a warning that "we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex... The potential for the disastrous rise of misplaced power exists and will persist... Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together."Dwight D. Eisenhower

Wednesday, May 13, 2009

Foreclosure Tsunami Second Quarter of 2009

Foreclosure Tsunami Expected in Second Quarter of 2009

RISMEDIA, May 14, 2009-National Short Sale Center, a short sale company, has announced that the nation is on track to experience record-setting amounts of foreclosures and bank-owned properties in the second quarter of 2009. After the first quarter of 2009 set a new record with 803,489 foreclosure filings, the company is predicting a first-ever quarter with more than one million foreclosure filings.

“We’re returning to pre-moratorium percentages, with a rather large initial increase in the second quarter as properties that have been in the moratorium flood through,” says Travis Hamel Olsen, president of National Short Sale Center. “From our data, we are forecasting more than one million foreclosure filings in the second quarter of 2009.”

After a 10% decrease in foreclosures for January, foreclosure activity across the nation increased 6% in February. The so-called “Sand States”-California, Florida, Nevada, and Arizona-top the lists of foreclosure rates.

“The dam is breaking for foreclosures and bank-owned properties,” added Olsen. “In the next three months, we are going to see more than one million foreclosures hit as the foreclosure moratorium is lifted.”

Banks move quickly to foreclose on homes after moratoriums lifted

For a second month in a row, foreclosure filings jumped dramatically in April, according to RealtyTrac. More than 342,000 households received at least one foreclosure-related notice in April, just slightly higher than March's record of 340,000. While the moratorium put in place by Fannie Mae and Freddie Mac at the end of 2008 and beginning of 2009 did stall the foreclosure process, it does not appear that any major progress was made in preventing foreclosures.

President Obama's $75 billion incentive plan to encourage the mortgage industry to modify loans rather than foreclose homes was announced in March. The plan was going to help nine million borrowers avoid foreclosure, according to the administration, but based on April's figures it does not appear the banks have been taking that option seriously.

Rick Sharga of RealtyTrac told the Associated Press, "We've never seen two consecutive months like this. It's the volume that's surprising." I'm not sure why he found the volume so surprising. Everyone should have expected a major jump in foreclosure filings after the moratorium. Obama's incentive plan only impacts Fannie Mae and Freddie Mac loans, or loans guaranteed by one of the two, while many of the loans in trouble are subprime loans, Alt-As and other types of mortgages that do not comply to Fannie's or Freddie's standards.

The number of homes repossessed in April did go down to about 63,000 homes, but that number will likely go up soon as the homes just starting the foreclosure process move through it. Those repossessed homes will then be put back on the market at deeply discounted prices, driving the median home price down nationwide.

First quarter home sales fell around the country in all but six states, where foreclosures and short sales dominated the market: Arizona, California, Florida, Nevada, Minnesota and Virginia.

Nevada continues to hold the lead in foreclosure rates. One in every 68 households received a foreclosure filing, but that is down 18 percent from March. One in every 135 Florida homeowners received a foreclosure notice in April. California is a close third with one in every 138 households getting a foreclosure notice.

One in every 56 households in Las Vegas received a filing, making it the city with largest number of foreclosures filings. Cape Coral-Fort Myers was a close second with one in every 57 households receiving a filing. Other cities with high foreclosure rates included the California cities of Merced, Modesto, Riverside-San Bernardino, Bakersfield, Vallejo-Fairfield and Stockton. In Florida, the two hardest hit cities aside from Cape Coral-Fort Myers were Miami and Orlando.

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