Foreclosures Up 90% In May

May’s national foreclosure rate was up 90% from last year, and 19% from April according to Reuters. Some of the statistics being quoted by the media are astonishing to us: In Nevada, a formerly hot real estate market, there was 1 foreclosure filing for every 166 households. Nevada’s foreclosure rate was up 40% from April.

During the month of May, there was one foreclosure filing for every 656 households in the US.—MEGHANN MARCO

May foreclosure filings soar 90%; more housing woes likely [Boston Globe]
May home foreclosures up 19 percent: RealtyTrac [Reuters]
(Photo: rappensuncle)

Comments

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  1. matukonyc says:

    My understanding is that the adjustable rate mortgages that proliferated during the housing boom are to blame… is it really a reflection of the “market” or of lending practices?

  2. dbeahn says:

    Both. If it was a boom market and you got into trouble with your adustable rate mortgage, you just sell, pocket your profit, and move on.

    But in a slow market, that option isn’t there. So you try and try and try and end up in foreclosure.

  3. Fuzz says:

    If you want to follow a bunch of these types of stories, go here:
    [ml-implode.com]

    I found the site in February, there were 32 mortgage companies on the list, now there are 82.

  4. mopar_man says:

    But….I can get a $200,000 mortgage for $200/month. That’s a good idea right?

  5. pjsammy says:

    @mopar_man: only with $0 down :)

  6. segfault, registered cat offender says:

    Casey Serin has left his wife and fled to Australia. An update to the previous story Consumerist ran on him.

  7. segfault, registered cat offender says:

    Um, I can’t get links to work. Anyway, Casey Serin has left his wife and fled to Australia. An update to your previous story.

    [exurbannation.blogspot.com] – Exurbannation

  8. Chicago7 says:

    Cool. Pretty soon I’ll be able pay cash for a foreclosed condo in downtown Chicago for next to nothing.

  9. Canadian Impostor says:

    Bring on the market crash.

  10. 3drage says:

    I try to gauge what is going on by my surroundings, because the market is never the same place as any other. However, on my block alone there are two houses in foreclosure and two up for rent. That is out of 10 houses on the block. To me, that looks pretty bleak, considering one of the houses has been on the market for over a year at the foreclosure price and the bank just can’t get rid of it.

  11. hypnotik_jello says:

    ha ha

    /nelson>

  12. cindel says:

    WTF? He left his wife? Wasn’t he supposed to get a job unless of course that job is in Australia?

  13. fhic says:

    @Chicago7:

    Have prices started to drop that much in downtown Chicago?

    I bought three condos in Austin, TX for cash in the early 80s when they were at the bottom of the market. Two of them had been in foreclosure for quite some time. The other one the bank wouldn’t foreclose because they didn’t want it. I was also able to negotiate a pretty good deal with the HOA.

    Anyway, I rented them for a while and made back my investment. I sold them just after Y2K. I made enough on the deal to buy my house in San Diego. Now if I can do the same trick again, I can move to my beachfront house in La Jolla just in time to retire. Of course, if I guess wrong, it’s a box underneath the freeway overpass. :-)

  14. VA_White says:

    I thank FSM that we decided to buy less house than we were approved for and that we told them no effing way on the fancy ARM mortgage.

    Me, my hubby, and our boring 30-year 5.75% fixed are at home, paying 19% of our net take home on housing, and laughing our asses off. :)

  15. skittlbrau says:

    well, since casey serin is now in australia, should we expect their foreclosure rates to skyrocket?

  16. shdwsclan says:

    Its simple math…

    Poor people shouldn’t have houses, they should rent and line the pockets of the upper middle and upper classes…

  17. zolielo says:

    I am waiting for a house near the base in San Diego. It seemingly is getting more and more likely. The house next to the house that I have been coveting is selling for a loss of $200K. Yay, but kind of sad…