Obama has wasted hundreds of billions with his failed homeowner rescue/mortgage schemes (see HAMP) and still the number of foreclosures are expected to top record numbers set in 2010.
Via the LATimes:
California and other states are likely to see an enormous wave of long-delayed foreclosure action in the coming year as banks deal more aggressively with 3.5 million seriously delinquent mortgages.
And experts said that dealing with the foreclosure process, from issuing notices of default to selling repossessed homes, is likely to push housing prices lower this year before the real estate market has a chance to recover.
A report from RealtyTrac, an Irvine data firm, said about 1.9 million U.S. homes were hit with default notices, foreclosures and other actions last year. That is down from 2.9 million in 2010. Seriously delinquent loans are defined as being four months in arrears.
“There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets,” said Brandon Moore, chief executive of RealtyTrac. “We expect that trend to continue this year.”
The real estate market was in “full delay mode” last year on foreclosures as banks worked to correct legal problems with procedures in many states, Moore said.
In California, 3.2% of homes logged at least one foreclosure filing last year, down from 4.1% a year earlier. But regional differences continued: 2.7% received notices in Los Angeles County and 2.5% in Orange County, compared with nearly 5% in San Bernardino County and 5.3% in Riverside County.
California saw a second-half surge in initial notices of default — the first warnings that a bank is preparing to seize properties with delinquent mortgages, said RealtyTrac spokesman Daren Blomquist.
Though many more foreclosures are expected this year, the number still will be below the peak of 2010, Blomquist said.
What’s the government’s solution? Stick it to the taxpayers…
…Some Fed officials have been advocating reducing the loan principal more often for underwater borrowers, those whose homes are worth less than their mortgages. The central bank also has been urging mortgage giants Fannie Mae and Freddie Mac, kept alive by three years of taxpayer bailouts, to unload their backlogs of foreclosed properties in bulk discount sales to investors who would then rent out the properties.
That process, which Fannie and Freddie officials said is under study, could help stabilize the housing markets. However, in the short term it would increase taxpayers’ tab for propping up the government-sponsored housing finance firms, which already has reached about $150 billion.
There is no mention about Obama raising Freddie and Fannies debt ceiling to $400 billion or how he refuses to appoint an Inspector General to oversee all the taxpayer bailout cash each receives. It’s almost like they’re hiding the truth from the taxpayers.
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