Comments on: Foreclosures Up, But Not Dramatically (But See Update) http://www.bizzyblog.com/2006/09/15/foreclosures-up-but-not-dramatically/ The Business End of the Blogosphere Sat, 10 Jan 2009 00:18:07 +0000 http://wordpress.org/?v=2.5 By: Tracy Coyle http://www.bizzyblog.com/2006/09/15/foreclosures-up-but-not-dramatically/#comment-30558 Tracy Coyle Sat, 16 Sep 2006 01:10:09 +0000 http://www.bizzyblog.com/2006/09/15/foreclosures-up-but-not-dramatically/#comment-30558 To clarify the 500,000 figure: from RealtyTrac (http://www.realtytrac.com/ContentManagement/PressRelease.aspx?ItemID=712) 323,102 properties entered foreclosure in the first quarter and an additional 272,109 entered in the second quarter, a total of 595,211. A small percentage would be a second mortgage entering the process or someone resolving the problem in the first but relapsing in the second (someone getting a tax refund to cure the arrearage but not enough to cure the problem that led to the foreclosure in the first place). Also, a small percentage of foreclosures are against business property. All together those would probably be less than 5%, hence my 500,000 figure would be a little low. On a separate but related note, the Census Bureau has released its numbers for median incomes for use in calculating the bankruptcy means test. The new numbers take effect on October 1st and in 39 states, the numbers are DOWN...with D.C down almost $10,000. This will make it a little harder for people to qualify for chapter 7 bankruptcy but it also says that in a large chunk of the country, incomes have fallen at the same time expenses, like gas and mortgage payments, have increased. To clarify the 500,000 figure: from RealtyTrac (http://www.realtytrac.com/ContentManagement/PressRelease.aspx?ItemID=712)

323,102 properties entered foreclosure in the first quarter and an additional 272,109 entered in the second quarter, a total of 595,211. A small percentage would be a second mortgage entering the process or someone resolving the problem in the first but relapsing in the second (someone getting a tax refund to cure the arrearage but not enough to cure the problem that led to the foreclosure in the first place). Also, a small percentage of foreclosures are against business property. All together those would probably be less than 5%, hence my 500,000 figure would be a little low. On a separate but related note, the Census Bureau has released its numbers for median incomes for use in calculating the bankruptcy means test. The new numbers take effect on October 1st and in 39 states, the numbers are DOWN…with D.C down almost $10,000. This will make it a little harder for people to qualify for chapter 7 bankruptcy but it also says that in a large chunk of the country, incomes have fallen at the same time expenses, like gas and mortgage payments, have increased.

]]> By: Tracy Coyle http://www.bizzyblog.com/2006/09/15/foreclosures-up-but-not-dramatically/#comment-30518 Tracy Coyle Fri, 15 Sep 2006 19:02:25 +0000 http://www.bizzyblog.com/2006/09/15/foreclosures-up-but-not-dramatically/#comment-30518 Tom, Tom, Tom. Despite the 'rosey' nonissue from the Bankers Association, foreclosures are up 25% this year over last year according to RealtyTrac. Some states are up significantly (my own is up 62%). States like California, Kansas, Mass, Michigan, Minn, Oregon and Rhode Island are all up over 100% (Nevada is up 94%). Yes some are down significantly - strangely enough, most of the Gulf Coast including Florida, Lousiana and Mississippi. The change in the Bankers report suggested an increase of 87,000 foreclosures. The more comprehensive RealtyTrac report indicates over 250,000 new foreclosures in the second quarter. Over 500,000 homes were foreclosed on in the first half of this year. Half a million families. If a report came out that showed 500,000 people lost their jobs in the first six months, it would be serious news. If a report came out recalling 500,000 cars, it would be serious news. A report showing that over 500,000 families are more than 90 days past due on their mortgages...ah...it's an improvement. Oh. Last point. Chapter 7 does not save a home for a homeowner in trouble with the mortgage, only a chapter 13 does that. Your mortgage would have to be current to benefit from a chapter 7. Also, as foreclosures are usually not filed until after 90 days late, most of the foreclosures filed in the first quarter were against people already in trouble when the new law too effect. Tom, Tom, Tom. Despite the ‘rosey’ nonissue from the Bankers Association, foreclosures are up 25% this year over last year according to RealtyTrac. Some states are up significantly (my own is up 62%). States like California, Kansas, Mass, Michigan, Minn, Oregon and Rhode Island are all up over 100% (Nevada is up 94%). Yes some are down significantly - strangely enough, most of the Gulf Coast including Florida, Lousiana and Mississippi. The change in the Bankers report suggested an increase of 87,000 foreclosures. The more comprehensive RealtyTrac report indicates over 250,000 new foreclosures in the second quarter. Over 500,000 homes were foreclosed on in the first half of this year. Half a million families. If a report came out that showed 500,000 people lost their jobs in the first six months, it would be serious news. If a report came out recalling 500,000 cars, it would be serious news. A report showing that over 500,000 families are more than 90 days past due on their mortgages…ah…it’s an improvement.

Oh. Last point. Chapter 7 does not save a home for a homeowner in trouble with the mortgage, only a chapter 13 does that. Your mortgage would have to be current to benefit from a chapter 7. Also, as foreclosures are usually not filed until after 90 days late, most of the foreclosures filed in the first quarter were against people already in trouble when the new law too effect.

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