Last month saw twice as many foreclosures than last September, says RealtyTrac, the foreclosure tracking organization.
Even with an 8% decline in foreclosures from August’s truly mind boggling numbers, September still managed to see 223,538 foreclosure filings.
Foreclosures are deepening the U.S. housing recession by pushing more homes onto a market where sales and prices are dropping. There’s a 10-month supply of unsold homes, the highest in at least eight years. As many as half of the 450,000 subprime borrowers whose mortgages will re-set through November may lose their homes because they can’t afford the higher payments, according to a report by Credit Suisse Group.
“The truth of the matter is that borrowers are going into default as soon as they hit their adjustments,” said Rick Sharga, executive vice president of marketing at Irvine, California-based RealtyTrac. The company sells foreclosure information and has a database of more than 1 million properties from 2,500 U.S. counties.
California has the dubious honor of having the most actual bank repossessions (in which the property is unsellable and must be surrendered to the bank), with 7,853.
October is expected to be an exciting month for the subprime meltdown, with $50 billion in ARMs set to reset.
Foreclosures Doubled in September as Loan Rates Rise (Update5) [Bloomberg] (Thanks, Chris!)