Massachusetts Bankruptcy Attorney – Home repossessions at highest level in months – Weymouth Bankruptcy Attorney
September 19, 2010
U.S. home repossessions spiked in August to highest level since the start of the U.S. mortgage crisis. The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday Sept. 16, 2010.
In a not-so-stunning report, RealtyTrac has reported tht banks repossessed 95,364 properties in August, which is up 3% from July. August 2010 numbers are an increase of 25% from August 2009. August makes the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. Banks have been stepping up repossessions to clear out their backlog of bad loans.
With such growing numbers of foreclosure, the housing market recovery could stumble given the continuing high rate of unemployment, the sluggish economy and lack of consumer confidence. Additionally, home sales nationwide have collapsed since the federal homebuyer tax credits expired in April.
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to RealtyTrac. The firm estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures. Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can’t qualify or fall back into default.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. Nearly half of the 1.3 million homeowners who enrolled in the Obama administration’s mortgage-relief program have fallen out.
The program, known as Making Home Affordable, has provided permanent help to about 422,000 homeowners since March 2009.