Foreclosure1 Blog

In September this year the number of foreclosures across the country doubled from what it was in August and marked a 36% rise from July. In August 243,947 foreclosures had been listed which showed a 115% rise from 113,300 foreclosures last year during the same month. In July 179,599 foreclosures were listed. The numbers have been released by a reliable online tracking agency – one of the pioneers in this particular field.

The National Association of Home Builders expects that the sale of houses will fall to an all time record low during the following six months. In September the index fell by 20 points – the 7^th consecutive monthly decline. It is the same reading as that of January 1991 slump. The seasonal index average has remained below 50 since May last year. From March this year the fall has increased with each passing month.

The foreclosure process includes four steps. The filing numbers include all three of default, foreclosure and auction notices as well as the final one of bank repossession. If the owners have more than one mortgage then multiple notices might confuse the figures. Defaulting leads to a foreclosure notice. This is followed by auction and sale or repossession.

The month of August has the unique distinction of having the highest number of foreclosure filings made in a single month since records are being kept for the last two years. The August phenomena might well be the indicator for worse things to come. A large number of sub-prime rates are about to be reset and point to another bout of inclement weather. Bank repossessions jumped to 42,789 in August compared to 20,116 in the previous year. In July there were 26,842 bank takeovers.

Nation wise there has been one filing for every 510 houses. Missouri with 1:842 ranked 18^th having 3.079 foreclosures. Kansas ranked 37^th with 428 foreclosures and a ratio of 1:2,795. The figures are indicative of another fact – house sales are dropping. Instead of being sold off the units are reverting back to the lenders. The first rankers were Nevada, California and Florida.

The giants in the house building business met at an industry conference in New York with gloom written on their faces. They were gearing up to work under the pall of these negative conditions that are likely to continue for quite sometime in the future.

Via

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