The title of aReutersarticle released on April 5, 2012 is “Americans brace for next FORECLOSURE wave” (Web-site/URL: http://www.reuters.com/article/2012/04/04/us-foreclosure-idUSBRE83319E20120404). “foreclosure” is SCARY, from a FIANCIAL/ECONOMIC standpoint/perspective.
According to Mark Seifert, “executive director of Empowering & Strengthening Ohio’s People (ESOP), a counseling group with 10 offices in Ohio”, “We are right back where we were two years ago (2010). I would PUT MONEY ON 2012 being a BIGGER year for foreclosures than 2010. Last year (2011) was an anomaly and NOT (?) IN A GOOD WAY“. So there were FEWER foreclosures in 2011 and that’s NOT good? Ohio, of course, is a REPUBLICAN state (12 Republicans & 5 Democrats in the House) and is home to House Speaker JOHN “Hell No” BOEHNER (Ohio’s 8th District).
“Although foreclosure starts were 50 percent or more LOWER than for the same period in 2010, those begun by Deutsche Bank were UP 47 percent from 2011. Those of Wells Fargo’s ROSE 68 percent and Bank of America’s, including BAC Home Loans Servicing, JUMPED nearly seven-fold — 251 starts versus 37 in the same period in 2011″. Considering the fact that we’re talking about the business world, where 1% could be HUGE, these numbers are ASTRONOMICAL.
“Online foreclosure marketplace RealtyTrac estimated that while foreclosures dropped slightly nationwide in February (2012) from January (2012) and from February 2011, they rose in 21 states and JUMPED SHARPLY in cities like Tampa (64 percent), Chicago (43 percent) and Miami (53 percent)”. Tampa, Chicago and Miami are MAJOR METROPOLITAN AREAS and 64%, 43% and 53% are STAGGERING proportions.
“RealtyTrac CEO Brandon Moore said the “numbers point to a gradually RISING foreclosure tide as SOME OF THE BARRIERS THAT HAVE BEEN HOLDING BACK FORECLOSURES ARE REMOVED“, allowing banks to go after people who are/have been struggling to make their mortgage payments MORE AGGRESSIVELY.
According to Michael Redman, “founder of 4closurefraud.org”, “The subprime stuff IS LONG GONE. Now, the folks being affected are HARDWORKING, EVERYDAY Americans (who are) struggling because of THE ECONOMY“, which is still LIMPING/STUMBLING along. We’ve seen/read/heard this TOO MANY TIMES.
“Until December, 2010, Daniel Burns, 52, had spent his working life in the trucking industry as a long-haul driver and manager. When daily loads at the small family business where he worked tailed off, he lost his job. Unable to cover his mortgage, Burns received a grant from a government fund using money repaid from the 2008 bank bailout. That grant is due to expire in early 2013 and Burns is holding out on HOPEFUL COMMENTS from his former employer that he MIGHT get his job back IF the economy recovers“. Again, “might” and if” ARE NOT guarantees. “IF THINGS DON’T PICK UP, I WILL BE OUT ON THE STREET“, which DOES NOT sound good.
“A bit further up the shore of Lake Erie, Cristal Fell, who works night shifts entering data for a trucking company in Toledo, has fallen behind on her mortgage a second time because her EX-husband lost his job and her overtime was cut”. On a side note, if this woman has to depend on her EX husband, that’s BAD news because on top of financial strain, there is PSYCHOLOGICAL/EMOTIONAL strain. “ONCE YOU GET BEHIND IT’S SO HARD TO CATCH UP“, especially in this economy. Fell seems to be/sounds EXASPERATED.
According to Ed Jacob, “executive director of non-profit lender Neighborhood Housing Services of Chicago Inc, which provides FORECLOSURE COUNSELING“, which is sure to be in high demand these days because foreclosures are INCREASING. “We’re seeing more people coming through who have GOOD loans with REASONABLE interest rates“. What’s a “reasonable interest rate?” “But in many households (now), ONLY ONE person works now instead of two, or they had their hours cut”. This is a problem everywhere except in CHINA, HONG KONG and TAIWAN, three places where women are supposed to be PASSIVE upon marriage or entrance into long-term relationships. Again, this should remind us of KATE HE and CUI XILING who got married and had kids SOLELY on PARENTAL ORDERS/NAGGING.”The answer to the housing crisis now is JOB CREATION“, which, again, is a no-brainer, BUT IT IS MUCH EASIER SAID THAN DONE.
“Zillow expects THE RESURGENCE in foreclosures this year (2012), combined with EXCESS INVENTORY of UNSOLD, BANK-OWNED HOMES will contribute to a 3.7 percent national DECLINE in prices before the market hits bottom in 2013 and stays there until 2016″. THAT’S A LONG TIME TO WAIT for the housing market to hit bottom, especially for people who think that/act like they’re geniuses at selling property like HELEN HUANG in Fremont, CA, even though she has had NO education or background in selling property.
According to Zillow chief economist Stan Humphries, “The HANGOVER from this crisis WILL FAR OUTLAST THE PARTY of the boom years” of the ’90s. This is a VERY PESSIMISTIC/BLEAK outlook/forecast.
“A recent survey by the California Reinvestment Coalition, an umbrella group of nearly 300 non-profit groups in the state, of member agencies found (that) 75 percent of respondents expected increased demand for their foreclosure prevention services in 2012, but more than a third had to scale back services because of FUNDING CUTS“. IF the economy is TRULY recovering, we would see FEWER “funding cuts”. This, however, DOES NOT seem to be the case this time.
“ESOP in Ohio engages in “hits” on Chase branches — they say Chase is THE LEAST accommodating major bank when it comes to working with struggling homeowners — where they try to hand letters to bank managers calling on chief executive Jamie Dimon to lobby FHFA (Federal Housing Finance Agency) head Edward DeMarco for principal reductions. A Chase spokeswoman said the bank has made “EXTENSIVE EFFORTS” (?) to work with homeowners, helping 775,000 borrowers stay in their homes since early 2009 (the year that the recession got REALLY bad), avoiding foreclosure “more than TWICE AS OFTEN as we have had to foreclose“.
Finally, “after a recent protest at a Chase branch in Cleveland (Ohio)”, ESOP’s Seifert finished off: “UNTIL banks engage in meaningful principal reduction as a matter of course, this crisis WILL NOT end“. This DOES NOT sound good.
So, it looks like HOUSING WILL CONTINUE TO BE A DRAG ON THE ECONOMIC RECOVERY FOR QUITE SOME TIME/AT LEAST INTO THE NEAR FUTURE.