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Home foreclosures skyrocket in North Carolina – up 127% from 2007

Posted August 14, 2008

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— Home foreclosures in North Carolina zoomed upward in July, rising 127 percent from one year ago and 24 percent higher than in June.

RealtyTrac, a California-based foreclosure tracking firm, reported Thursday that 4,303 properties were facing foreclosure action of some kind in July. That’s one in every 936 properties.

The surge in North Carolina, which ranks 25th among the 50 states in foreclosures but is 10th in terms of population, reflected a nationwide surge as the U.S. housing market continued to struggle.

Nationwide, more than 272,000 homes received at least one foreclosure-related notice in July, up 55 percent from about 175,000 in the same month last year and up 8 percent from June, RealtyTrac said. That means one in every 464 U.S. households received a foreclosure filing last month.

RealtyTrac monitors default notices, auction sale notices and bank repossessions. Lenders repossessed more than 77,000 properties nationwide in July, the company said.

Foreclosure filings for July increased from a year earlier in all but eight states. Nevada, California, Florida, Arizona, Ohio, Georgia and Michigan had the highest foreclosure rates.

The combination of weak housing sales, falling home values, tighter mortgage-lending criteria and a slowing U.S. economy have left financially strapped homeowners with few options to avoid foreclosure. Many can't find buyers or owe more than their homes are worth and can't refinance into an affordable loan.

As foreclosures soar, banks and mortgage investors are also facing a pile-up of foreclosed properties on their books and are cutting prices dramatically.

RealtyTrac noted that it had more than 750,000 foreclosed homes in its database of properties for sale, equal to about 17 percent of the 4.5 million U.S. homes that were up for sale in June.

To speed up the disposition of the 54,000 foreclosed properties it owns, Fannie Mae is opening offices in California and Florida and is considering selling those properties in bulk to investors.

"I do not think this is a time to be holding onto (foreclosed properties), hoping for a better day," CEO Daniel Mudd said last week.

It remains to be seen how much the government's intervention will stem the housing crisis. President Bush last month signed sweeping housing legislation that aims to prevent foreclosures by allowing homeowners to swap their mortgages for more affordable loans, but only if their lender agrees to take a loss on the initial loan.

The bill is projected to help about 400,000 households.

The number of foreclosures "could start to stabilize as early as the first quarter of next year if the government program gains any traction," said Rick Sharga, RealtyTrac's vice president for marketing. "That's really the unknowable right now."

Even with government help, nearly 2.8 million U.S. households will either face foreclosure, turn over their homes to their lenders or sell the properties for less than their mortgage's value by the end of next year, predicts Moody's Economy.com.

In the RealtyTrac report, the Cape Coral-Fort Myers area in Florida was the metro area with the highest rate of foreclosure, followed by three California cities: Merced, Stockton, and Modesto. Las Vegas ranked fifth.

77 Comments

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  • TheAdmiral Aug 15, 2008

    I said it once, I will say it again:

    I watch the congressional record and the information is right there.

  • TheAdmiral Aug 15, 2008

    "Of course you can do some research yourself if you don't like WikiPedia."

    Quoting wikipedia is asking for mis information from those who spew it. I think the term you used is "Unchecked."

  • TheAdmiral Aug 15, 2008

    "Gramm spearheaded efforts to pass banking reform laws, including the landmark Gramm-Leach-Bliley Act in 1999, which modernized Depression-era laws separating banking, insurance and brokerage activities."

    So, what does that have to do with the mortgage companies and the loan sharks behind them? The banks are sold the useless paper, not the banks issue it. Your point might be valid if the banks rampantly went nuts, but the law on the books specifically state that the banks my not directly engage in the act of real estate sales or underwrite any loans for such.

    I should know..... I am one of them there professional sellers.

  • wildervb Aug 15, 2008

    TheAdmiral, If you were paying any attention you would know that it was Phil Graham that pushed and got passed regulatory changes that allowed banks to finance these highly questionable mortgages.

    "Later in his Senate career, Gramm spearheaded efforts to pass banking reform laws, including the landmark Gramm-Leach-Bliley Act in 1999, which modernized Depression-era laws separating banking, insurance and brokerage activities. Between 1995 and 2000 Gramm, who was the chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, received $1,000,914 in campaign contributions from the Securities & Investment industry" (From WikiPedia).

    Of course you can do some research yourself if you don't like WikiPedia. The Republicans always look out for big business, even at the expense of average Americans.

  • TheAdmiral Aug 15, 2008

    "Admiral you must be a GOP political hack. I guess they get a freepass for everything that's happened over the last 8 years!"

    I by no means am a GOP hack - I watch the congressional record and the information is right there.

    Clinton signed the bill in 1994. The housing market took off in 2004. The housing market collapsed in 2006. The policy did it's job. Got people into a house and out of a house in as little as 4 years. Right when the republican was in office.

    The facts are undeniable - unless you're in denial.

  • TheAdmiral Aug 15, 2008

    "Just goes to show that after the "name calling"; "Sound bites" and "photo opts"; the effects and impact of 6 UNCHECKED years of Republican policies and taking care of their rich friends and family has led to a WAR on the average American also."

    Oh please. If you think it is Republican Policies in the last six years - I think you are dreaming - considering for the last FOUR YEARS IT HAS BEEN DEMOCRAT CONTROLLED CONGRESS.

    So take your uneducated banter to the local teachers union - they love that kind of misinformation.

  • TheAdmiral Aug 15, 2008

    humbleblaklady -

    Hipocrite.

    You just said Clintons policies of relaxing the lending rules had nothing to do with the failure. Then you said that "ALL factors that CANNOT be factored out of the overall economic equation or the cost effecting the housing market!"

    So which is it?

    Bush surely had nothing to do with the signature on the document.

  • humbleblaklady Aug 15, 2008

    Try as you might, Bush alibiers,(a Bush word so it doesn't have to be grammatically correct); Clinton's housing policies did NOT lead to $9 TRILLION plus national debt or a $500 BILLION national deficit; nor a nosedive in the value of the dollar--ALL factors that CANNOT be factored out of the overall economic equation or the cost effecting the housing market!

  • redant Aug 15, 2008

    There is no free lunch.

  • humbleblaklady Aug 15, 2008

    Just goes to show that after the "name calling"; "Sound bites" and "photo opts"; the effects and impact of 6 UNCHECKED years of Republican policies and taking care of their rich friends and family has led to a WAR on the average American also. Only God can fix this COMPLETE mess they have led our country into.

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