U.S. Foreclosure Filings Shoot Up -- RealtyTrac

U.S. foreclosure filings surged 58% in H1 2007, with California skyrocketing 170% and Florida up 77%, according to foreclosure data company RealtyTrac Inc. A total of 573,397 homes were subject to some form of foreclosure filing in the period, including default notices, auctions and repossessions. Homeowners with adjustable rate mortgages (ARMs) whose monthly payments have gone up are finding it increasingly difficult, in the current environment, to sell or refinance their homes in order to avoid default. The inventory of homes for sale in June matched May's figure at 8.8 months, the highest in fifteen years. "Foreclosure activity shows no sign of slowing down," said RealtyTrac CEO James Saccacio. "We could easily surpass 2 million foreclosure filings by the end of the year, which would represent a year-over-year increase of over 65%."

Sources: Press release, Reuters, Forbes, Bloomberg
Commentary: Optimism Takes a Hit as Real Estate Continues to Slump • Weak Home Sales, Tightening Credit Standards = Multiple Mortgage Apps • Subprime Jumps the Fire Line - Again
Stocks/ETFs to watch: DSL, CFC, CORS. ETFs: PEY, RPV, RYF
Earnings call transcripts: Countrywide Financial Q2 2007

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Comments

[wixeywaxy:]

The whole affair around sub prime loan problems is classic market turbulence. All the failures that will occur as a result of these mortage problems will be to those institutions that had leveraged themselves excessively reaching for high returns in a sector everybody knew would explode, it was just a matter of time. By far the vast majority of these loans were spread out widely and only a few organiations will be exposed to a dangerous level. The losses are real and they are the price usually paid in the end for seeking returns that are too good to be true. Since the public is easily convinced that this problem is a threat to the whole economy the net result will be a sell off of other assets that will provide a great opportunity for rational investors. Then too summertime is the weak period when this kind of thing is apt to produce a greater influence. Wall St sharks will hype the negatives to the moon. Vic

2007 Jul 31 12:31 PM

[wixeywaxy:]

The whole affair around sub prime loan problems is classic market turbulence. All the failures that will occur as a result of these mortage problems will be to those institutions that had leveraged themselves excessively reaching for high returns in a sector everybody knew would explode, it was just a matter of time. By far the vast majority of these loans were spread out widely and only a few organiations will be exposed to a dangerous level. The losses are real and they are the price usually paid in the end for seeking returns that are too good to be true. Since the public is easily convinced that this problem is a threat to the whole economy the net result will be a sell off of other assets that will provide a great opportunity for rational investors. Then too summertime is the weak period when this kind of thing is apt to produce a greater influence. Wall St sharks will hype the negatives to the moon. Vic

2007 Jul 31 12:31 PM

[chagrinned1:]

If one quotes a source, such as Realtytrac, one needs to IDENTIFY the source. There are folk commenting on business matters/trends, who have NO business doing so except self-serving motives. Make SURE Marketwatch stays clean and aware of this trend please.

2007 Jul 31 04:20 PM

[chagrinned1:]

If one quotes a source, such as Realtytrac, one needs to IDENTIFY the source. There are folk commenting on business matters/trends, who have NO business doing so except self-serving motives. Make SURE Marketwatch stays clean and aware of this trend please.

2007 Jul 31 04:20 PM

[Sell My Hou...:]

The issue is a problem with mortgages, developers, builders, invesotrs, etc. Many people are looking at just one cause of the current foreclosure problem. I think it is a combination of all.

2008 Mar 26 04:11 PM