Foreclosures: Not Getting any Better

While most of the media covered the monthly Realtytrac numbers released last week, the more reliable quarterly Mortgage Bankers National Delinquency Survey was released Wednesday, and the news is all bad.  The seasonally-adjusted total of mortgages in foreclosure or default is approaching 15%, and remains at record high levels.  Foreclosures remain at quadruple their pre-crisis levels, and more than double the rate experienced in any prior recession since the Depression.  Meanwhile the Administration's HAMP program is mostly offering homeowners false hopes.  For my summaries of publicly available foreclosure data, go here.  We have not turned the corner on foreclosures, and as a result the shadow inventory of unsold homes, at around 7 million, will continue to depress home prices, construction and the economic recovery generally, while the unresolved $10 trillion in residential mortgage debt will continue to depress consumer spending.

Comments

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[Photo Recovery]

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[Cindy]

Basing an economy on "growth," housing, or any one industry was a bad idea. Particularly because this is a cyclical industry to begin with and requires billions in govt subsidies to keep it propped up. Ironic, since the home builders, realtors, etc, tend to align themselves more with Republicans who claim to be for a smaller govt. I guess billions in corporate welfare doesn't count. Our economy should be based on a wide variety of manufacturing, etc, unfortunately American co's sold out and moved factories overseas where there is even less regulatory oversight. That has all worked out so well for America, hasn't it? Sigh.