More Housing Doom

US home foreclosures soar in January

LOS ANGELES – The number of homes facing foreclosure jumped 57 percent in January compared to a year ago, with lenders increasingly forced to take possession of homes they couldn’t unload at auctions, a mortgage research firm said Monday.

Nationwide, some 233,001 homes received at least one notice from lenders last month related to overdue payments, compared with 148,425 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc. Nearly half of the total involved first-time default notices.

The worsening situation came despite ongoing efforts by lenders to help borrowers manage their payments by modifying loan terms, working out long-term repayment plans and other actions

“You have more people going into default and a higher percentage of the properties going back to the banks,” said Rick Sharga, RealtyTrac’s vice president of marketing.

The U.S. foreclosure rate last month was one filing for every 534 homes.

How many people reading that will only see property and not people?

The amount of misery represented there is heartbreaking.

For how many of those people were their homes the first step towards a new and better life? How many of them believed they were moving ahead in their lives, only to discover they’d been deceived about their actual ability to pay for their homes?

What’s especially interesting is what no one is mentioning.

Here on Satan Staten Island, every house I’ve seen built was using all-Mexican labor. Don’t try to convince me that these laborers were being paid the same rate as the Americans they replaced. That doesn’t fly.

And yet even with the cost of labor drastically reduced, there was no corresponding reduction in the price of the homes.

The only reduction I could see was in the quality of building materials used. These houses are cheap garbage that I doubt will last the life of a thirty-year mortgage. If we ever experience true hurricane-force winds up here, those houses will blow apart like the first little pig’s house made of straw.

And given how people are struggling just to pay for their mortgages, I wonder how many of them had to allow their homeowner insurance to lapse.

The housing collapse is a multi-stage bomb that hasn’t yet completely exploded.

Explore posts in the same categories: C.O.A.T. - Money, C.O.A.T. - Other, C.O.A.T. - Scams

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