2 million homes lost

In 2006 the Center for Responsible Lending predicted that the subprime foreclosure crisis would result in 2 million foreclosed homes.  That sad milestone was reached some time last month. 

HOPE NOW's September foreclosure report gives the grim news – there were roughly 90,000 more completed foreclosure sales for the month, i.e. running at 1 million per year, and rapidly approaching 2 million completed foreclosure sales since July 2007 (about half of them subprime).  At the current pace subprime foreclosure sales alone will reach 2 million by the end of 2011.  New foreclosure filings eased off a bit, but are still near their crisis peak levels of about 250,000 monthly or 3 million per year.  The number of foreclosure filings far exceeds the completed sales, partly because of successful modifications and refinancings, and partly because there is a huge inventory of homes in the foreclosure process.

It is also clear that the subprime crisis, while still ongoing, has spread to prime mortgages.  Subprime loans account for 11% of all mortgages, 39% of completed foreclosure sales, but only 29% of new foreclosure filings.  Subprime loans accounted for more than half of foreclosure filings and sales in the first half of 2008.

Interestingly there were 75,000 permanent modifications reported, for a period in which the Federal government’s Home Affordable mortgage program (HAMP) achieved fewer than 2,000 permanent modifications.  It seems odd that servicers choose to implement significant numbers of modifications outside the HAMP program, foregoing substantial payments from Treasury for successful mods.  It may be that the September non-HAMP modifications represent mortgage servicers concluding deals that were initiated before last April.  We’ll know more next week, when Treasury has promised to report the total number of permanent HAMP modifications achieved so far. 

 

Comments

[Ron Stone]

Here is a case where the government needs to do something for the greater good (stop spiraling home prices) without making the whole population n pay a hefty price for a few that benefit. But our "we know what's best for you" government rams through a huge (mostly unread) health care bill instead. Sadly, housing will continue for a number of years to drag down this economy.

[mountain homes for sale in virginia]

Whoa, 2 million homes is a very huge number!

-Sam

[imergent32]

Just found this blog and it is a very good one I must admit! Sine good points mentioned here and I’ll be on the look out for your new content!

[Robbed]

quote: "They're still there, just in the process of being sold to people who (presumably) aren't as financially reckless as the last people who owned them."

You must practice default law for foreclosure mills....

[Philippine Real Estate]

There's a lot of stuff in there. Thanks for sharing this post

[jncc]

Why would you say that these homes are "lost"?

They're still there, just in the process of being sold to people who (presumably) aren't as financially reckless as the last people who owned them.