U.S. home foreclosures fall but new delinquencies up to 3.5%

August 26, 2010 by · Leave a Comment
Filed under: REO News 

Hope you are all having a good summer.  I have been enjoying the good weather and relaxing time outdoors.

Things are not looking good while going into fall.  Unemployment numbers are at November 2009 levels, people falling behind on their mortgages is rising and the Fed is talking about buying more treasuries in another effort to try and fight the gravitational forces of deflation.

This is impossible, if the buying power and income is not in the system to support the current price levels then they have to fall.  If you keep trying to fight gravity then it will only serve to debauch the currency and create real chaos until we get our heads right and get back to fiscal responsibility.

The trend is up for foreclosures in the long run, that is for sure.  Too many jobs are going over seas and the ones that are left over will not support buying a home in most major areas.  Until we start creating real jobs that create real middle class incomes, this cycle will continue until it corrects itself the hard way.

Reuters – The number of U.S. homes headed for foreclosure fell during the second quarter, marking the first such drop since the housing slump began in 2006, but the improvement may be fleeting as the number of newly delinquent homeowners rose, a banking group said on Wednesday.

The percentage of loans in the foreclosure process declined last quarter to 4.57 percent from 4.63 percent in the first quarter, partly because of lender efforts to ease payments for homeowners and the impact of temporary home purchase tax credits, the Mortgage Bankers Association said in a report.

Foreclosures could head higher in coming months, however, as the percentage of borrowers at least one payment behind resumed its rise after easing late last year, the MBA said in a report that covers more than 85 percent of the market.

The pipeline of delinquencies and huge rise in properties on balance sheets of financial institutions last quarter has aggravated concerns that the critically important housing sector will drag the U.S. economy back into recession.

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