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War Against Us: Record # of Homes Seized by Banks
September 19, 2010
9:21 pm
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Aquarian
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Record number of US homes seized by banks
By Andre Damon
18 September 2010
More US homes were repossessed by banks in August—more than 95,000—than in any other month in history, according to realtytrac.com, a real estate marketplace. The company expects 1.2 million bank repossessions this year, a level 12 times higher than in 2005, when there were only 100,000.

Every month, the company releases a summary of all foreclosure actions, which includes bank repossessions. Realtytrac said that the number of foreclosures increased 4 percent last month, but was down by 5 percent compared with a year earlier.

The University of Michigan index of consumer sentiment unexpectedly dropped to its lowest level since 2009, according to results published Friday. The preliminary September reading of the index fell to 66.6, down from 68.9 in August.

And they have reason to feel that way, given the most recent economic developments. The news came as more companies announced layoffs, and economic figures continued to darken.

Meanwhile, the Philadelphia Federal Reserve’s index of Mid-Atlantic manufacturing showed that factory activity again contracted, disappointing analysts, who had expected it to plateau.

“Regional manufacturing activity has stalled over the past two months,” observed the bank. “The broadest indicators of growth—general activity, new orders, and shipments—have all remained slightly negative for at least the last two months.”

Fedex, the second-largest package shipping company in the United States, announced Thursday that it would cut 1,700 jobs, in line with a gloomy projection for US business.

“We expect a phase of somewhat slower economic growth going forward,” said CEO Fred Smith in the company’s second-quarter conference call on Friday. “Slower growth is consistent with historical business cycles,” he said.

The number of people putting in new claims for unemployment benefits remained basically unchanged last week, at 450,000, the same level as nine months ago, and nearly double the pre-recession level.

In short, all indicators point to a protracted economic slump, with little, if any, improvement in housing prices. The bad housing market will further hurt families burdened by falling wages and high unemployment. According to figures released by the US Census Bureau on Friday, one in seven Americans is now living below the poverty level, and the total number living in poverty, nearly 44 million, is the highest since the 1960s.

The Bureau of Labor Statistics said Friday that real average hourly earnings for production and non-supervisory workers fell again in August. A 0.3 percent increase in prices wiped out a 0.2 percent increase in average hourly wages, leaving these workers with a 0.1 percent fall in average hourly earnings.

Housing prices are down 28 percent since 2006, leaving nearly one quarter of mortgaged houses “underwater,” or valued at less than what their owners owe on them. In some states, the majority of homes are in this condition.

In Nevada, for instance, 68 percent of homes were under water, with the total value of mortgages being more than double the total value of houses.

Meanwhile Corelogic, a California-based real estate tracker, said that housing prices in some cities, such as Detroit and Las Vegas, will not return most homeowners to positive equity for another 10 years. And in a separate interview with Bloomberg radio, Fannie Mae chief economist Sam Khater said that there are 7 million US homes that are either vacant or in some stage of foreclosure.

Economists expect prices to drop—some by up to 10 percent, before the US housing market begins a lasting rebound. There had been a temporary resurgence in home values earlier in the year, but this ran out of steam as the Obama administration withdrew a tax credit to encourage first-time homebuyers in May.

Fannie Mae, the home mortgage company, said in a report issued Thursday that the expiration of the tax credit “suggests weakening home prices” in the coming period, and that the company projects a 7 percent decline in home sales in 2010, putting even more homeowners underwater.

The latest figures underscore the critical absence of any government programs to create jobs or alleviate the plight of families in foreclosure.

The “Home Affordable Modification Program,” which the Obama administration promised would help up to 8 million people adjust their mortgages, has to date offered permanent mortgage modification to only 422,000 homeowners. This figure is miniscule compared to the 10 million home foreclosures that are expected through 2012. But even this small assistance has taken the form of an adjustment to borrowers’ monthly payments, and not the total amount that they have to pay.

Instead of helping workers and homeowners, the administration has recently announced a program that would further extend tax credits for businesses, including write-offs for research and capital investments.

http://wsws.org/articles/2010/.....-s18.shtml

The Few assume to be the deputies, but they are often only the despoilers of the Many.
Georg Wilhelm Friedrich Hegel

September 20, 2010
12:44 am
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greeney2
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There are many programs for people to modify or get new loans Aquarian, you are just not familiar with them. These programs do not apply to situations where people have just gotten themselves into financial trouble, because they hocked their homes to but toys like Boats, RV's, and lavish cars. The world thinks they can live on a making a payment, so they abuse their credit buying everything under the sun, and when the economy tanks, they were first ones to start missing payments. They live on a shoestring, borrowing everydime of equaty for toys. They bought with zero downs and got upside down in loans, when the market dropped. Part of that is the responsibility of lending institutions, but not 100%. people are their own worst enemies, becasue along with all that is maxing out credit cards, and rolling balances into new cards with introductory offers. Leased cars is another pithole, people lease them, and end up thousands of miles over the allowed, so end up rolling all that deficiet into new leases. I've watched so many of my friends at work, get 2nds on their homes for $50,000 worth of toys, like offroad bikes and the toy hauler RV trailers, or borrow from their 401K plans, that they can not pay back. If they get laid off those 401K loans immediatly accelerate, you can only pay them back with payroll deductions, so they become taxable income and deemed premature withdrawals. They pay taxes and they also pay 10% penalties on that money. People get themselves into credit problems by living over their means, borrow off savings and equity, and do it to themselves.

September 20, 2010
2:16 am
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BloodStone
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Agree with Greeney 100% .

Live withing you're means is something most Americans don't understand. If you Budget unlike our Government. You can do very well with very little. People want to keep up with the Jones' is all this is. You owe more than you can ever pay back, should tell you it's time to stop.

I pay cash for everything I buy, If I can't afford it , I don't buy it. This was a great wake up call for those people. Most however will never see the lesson. They will continue to screw up, and wait for the Government to bail them out.

Just so you don't think I'm completley heartless. It has been on the news that most poeple who go on the Government program for these underwater mortgages are just defaulting over , and over. Some people are even willingly walking away from their homes, and letting it go to Foreclosure. People making dumb decisions is to blame for the housing market, as well as Dodd,Frank, Resko, Obama, Pelosi, and all the rest.

It's a what can I get for nothing world out there, that is all.

BloodStone...

If it were raining hookers, I'd get hit by a fag.

September 20, 2010
2:33 am
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greeney2
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The one thing I may blame on the banks is they are the ones doing a property evaluation, which you pay for. They are the experts on the value, and they loan based on the value at that time. They hisotically have taken the assumption the property will appreciate, so they may have the duty to give true projections of the economic future of your property, especially if a ballon payment is being built into the loan in years to come. People take those loans dependant upon the equity gaining, so at that time, it allows them to refinance. Seems like that should be part of the fair lending act to me.

Usually the case is people borrowing their equity for other things. The banks also have to stop extending loans for frivious things.

September 20, 2010
4:46 am
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Aquarian
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I think, once again, we are blaming the wrong people. Our current economic system is built upon a subterfuge where winners AND losers are meant to be created, unfortunately. Why? Because the inherent contradictions of capitalism, will evoking the idea of self-sufficiency and personal success, will eventually turn against the very same people dependent upon the system. People do not face foreclosure, bankruptcies, and seizures of their homes because they live "above their means". Closer examination of the root cause of these defaults are economic factors. These factors include wage cuts, unemployment, negative home equity, and restrictive lending practices. Not to mention that many homeowners were victims of predatory lending and ended up being stuck with mortgages much larger than their home value, which negates them of the ability to sell or refinance.

Unemployment, unofficially, is higher than what we are being told. Cost of living is increasing exponentially each day and these costs are exceeding what people are making in their jobs. On top of that, so businesses can "save themselves", many people are taking huge pay cuts. Therefore, many of them can't sustain themselves and their families. What are they supposed to do? Unfortunately we live in a society where we send he police to make sure that people leave their homes when its in imminent seizure. We send the police on the poor and working-classes, and in some other alternative, are forced to believe that Obama's foreclosure program would help them, when in fact it did nothing. Over 300,000 people that enrolled in his barebones program have fallen out because the government only bails out the wealthy Wall_Street bankers instead of Main_Street. The Obama Administration's program only expedited banks and their ability to engage in "short sales" of people's homes; a great devaluation of home property.

The Few assume to be the deputies, but they are often only the despoilers of the Many.
Georg Wilhelm Friedrich Hegel

September 20, 2010
9:28 am
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greeney2
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People do not face foreclosure, bankruptcies, and seizures of their homes because they live "above their means". Closer examination of the root cause of these defaults are economic factors.

Aquarian, there are many people who are the victims of layoffs, and forclosures who have done everything right, however the list of those who have hung their hides out on a limb abusing credit, living way beyond their means, far outweighs them.

You are a young guy, want til you are my age and could write a book about those you work with 30-40 years, and watch what they do. I've watched all, from people that got on a tangent that someone told them Income tax was illegal, you don;t have to pay it, so they fail to file a few years. I seen the ones who want to buy something stupid, so they go exempt(can't do that anymore) on claiming deductions or tell payroll deduct from the schedule of having 12 kids. Seriously, they think all they have to do is work nonstop overtime, to make up the difference, and at the end of the year, are short $5000 for taxes. Everyone said 401K's are stupid, so they don;t even put in a dime, and miss company matched amounts, all of a sudden its 20 years later, they have nothing, and your plan has grown and made money. We all lost at times in the 401K plans, but to not do it is giving up 50 cents on the dollar matched. I've seen so many people that are financial disasters, that are 60, been bankrupt, Lost cars and homes, maxed out credit cards over and over, and borrowed off everything they had. They go out to dinner, and charge it several times a week and rake up a CC balance that you are still paying for dinners from 2-5 years ago. Thats just stupid. They do not save, they do not withhold enough, they struggle to make all the minimum payments, and have no will power to stop spending. They get themselves into their own mess, thinking all they have to do is a minimum payment and stay buried in interrest. They rob Peter to pay Paul with home equity line of credits, and keep adding to their debts. Instead of cutting up the credit cards they do the same thing again and again, and thats why they end up unable to make the house payment. They are buried in so many payments, cars and insurance, the house and taxes are impossible to make when you get really behind.

What do you think happens when these people go bankrupt? They max everthing out buying all kinds of things on credit, and when they go bankrupt, they absolve those debts, they get a fresh start. Who pays for that? You and I pay for it. While most of us use restraint, and pay our bills, know when you can't afford something, to many this is planned. They get behind and don;t want to loose the house and the cars, and the courts say, these are the basic staples of life. The dirt bike with a financed loan may be a repo, but thats becasue it has a title and lienholder. What about that Sears card and you have a brand new washer and dryer, sears tires and batterys, maybe the deluxe refrigerator and sears oven. THey are unsecured loans, the debt gets wiped out, but where are the appliances? We get to pay for that on our cards and the costs factored into what we buy, and they get to keep them. What about the Visa and Mastercards that get absolved, and they have a nice Hawaii vacation on them, $5K in old dinners, a few ballgames and concerts, cloths, $40k in all kinds of things. We all pay for them when they get to stiff the banks, and still get to keep all the stuff. Maybe Aquarian loaned a few thousand dollars to his friend that went bankrupt. Not sure if you know what happens if you loaned $$$ on a second trust deed, on a property in forclosure, you either step up and assume the 1st loan, or your money is gone.

September 20, 2010
12:16 pm
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Nesaie
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Ugh...

It isn't about any of that. If you go back to the clinton era and prior, with the sec and the fannies and fredies, etc...

It's like a Nancy Drew story, the same culprits who stole everything from my GreatGrandParents.

But, apparently, nobody in this thread has actually read anything about the "sec". Laugh Laugh Laugh Laugh Laugh Laugh

Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen... - Zbigniew Brezhinsky

September 20, 2010
6:38 pm
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greeney2
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I talked about the Clinton era being part of the problem on a different threat someplace, where people in droves were buying houses with little or nonthing down in a good economy they thought would never go down. They got loans that had ballon payments in a few years, thinking by that time they could refinance into reasonable loans, as long as equity grew. Its not different than buying stock or buying any other investment, its a risk. They took it, and decided by both working, overtime, etc. etc., people convince themselves its the only alternative to staying in apartments, they could earn enough for that payment and drown in interrest, financing everything they own. WE want to blame Bush for this too, but it all came from the Clinton Era. IMHO so did todays health care delemia caused by the Clinton years, trending into HMO's.

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