The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins

Recent Posts

The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

Enter your email to subscribe to The Economic Collapse Blog:

Delivered by FeedBurner

Foreclosures Continue To Dramatically Increase In 2010

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

In a very alarming sign for the U.S. economy, foreclosures have continued to dramatically increase in 2010.  But there has been a shift.  Back in 2007 and 2008, experts tell us that most foreclosures were due to toxic mortgages.  People were being suckered into mortgages that they couldn’t afford with “teaser rates” or with payments that would dramatically escalate after a few years, and when those mortgages reset, the people who had agreed to them no longer could make the payments.  But now RealtyTrac says that unemployment has become the major reason for foreclosures.  Millions of Americans have become chronically unemployed during the economic downturn and many of them are losing their homes as a result.  But whatever the cause, one thing is certain – foreclosures have continued to skyrocket at a staggering rate.

According to a new report from RealtyTrac, foreclosure filings climbed in 75% of the nation’s metro areas during the first half of 2010.  At a time when the Obama administration believes that we are “turning the corner”, things just seem to get even worse. 

Some areas of the country continue to be complete and total disaster areas when it comes to real estate.  For example, you have got to feel really sorry for anyone trying to sell a house down in Florida right now.  According to RealtyTrac, Florida led the way with nine of the top 20 metro foreclosure rates in the country during the first half of 2010.


But the worst city for foreclosures continues to be Las Vegas.

According to RealtyTrac spokesman Rick Sharga, unemployment has replaced bad loans as the number one cause of foreclosures there….

“Las Vegas has seamlessly shifted from having a high level of foreclosures due to bad loans to defaults caused by a high level of unemployment.”

But other cities with high unemployment rates are having huge problems as well.

For those who believe that the economy is supposed to be “improving”, it must seem really odd that foreclosure rates in major cities such as Chicago continue to soar.

RealtyTrac says that foreclosure filings in Chicago have increased 23 percent year-over-year to one out of every 48 households.

But it isn’t just cities like Las Vegas and Chicago that are nightmares right now.

The truth is that this is a national crisis.

The Mortgage Bankers Association recently announced that more than 10% of all U.S. homeowners with a mortgage had missed at least one mortgage payment during the January to March time period.  That was a new all-time record and represented an increase from 9.1 percent a year ago.

Unfortunately, new all-time records are being set all over the place….

*The number of home foreclosures set a record for the second consecutive month in May.

*Banks repossessed 269,962 U.S. homes during the second quarter of 2010, which was a new all-time record.

*As of March, U.S. banks had an inventory of approximately 1.1 million foreclosed homes, which was a new record and which was up 20 percent from a year ago.

So is there any hope that things are going to get better soon?

Well, according to RealtyTrac’s CEO James Saccacio, that depends on the U.S. economy….

“The fragile stability achieved in many local housing markets hinges on improvements in the underlying economy, specifically job growth. If unemployment remains persistently high and foreclosure prevention efforts only delay the inevitable, then we could continue to see increased foreclosure activity and a corresponding weakness in home prices in many metro areas.”

Without good jobs, the American people are not going to be able to pay their mortgages.

So are the millions upon millions of jobs that have been lost coming back soon?

No, unfortunately they are not.

As we discussed at length in a previous article, the big global corporations that dominate our economy are figuring out that they don’t really need the rest of us anymore.  The American worker is becoming obsolete.  After all, why pay an American ten times as much to do the same job?  Big corporations can hire two people in China or India to do the same job and still pocket 80% of the difference.

In addition, big corporations don’t really need the headache of making employer contributions to Social Security, setting up benefit packages and pension plans or of trying to comply with the thousands upon thousands of ridiculous regulations that the U.S. government continues to spew out.

At this point, the American worker has become extremely unattractive for large corporations, and so jobs will continue to migrate to other areas of the world.

We allowed our politicians to merge us into a “global economy”, so now we are all going to have to deal with being part of a “global workforce”.

As jobs continue to be offshored and outsourced, more Americans are going to become unemployed and the foreclosure crisis is going to continue to be a nightmare.

It would be nice to put a positive spin on all of this, but there isn’t one.

  • Pangea

    The governments attempt to prop-up housing via the $8000 tax credit scheme, didn’t do anything but prolong the inevitable. Oops my bad, it did do something! It did sucker people into buying an overpriced home! Only now are we beginning to witnesss the true bottom, and that will be a tough pill to swallow for millions of homeowners. The bottom line… the government underestimated this recession. They were certain that this recession (like all previous recessions) would correct itself. That’s why they focused so deep into health care, because it was a good distraction while the economy was “supposedly” recovering. But this is not your great grandparents Depression. What’s coming would have petrified those people in comparsion.

  • TnAndy

    [b]”So are the millions upon millions of jobs that have been lost coming back soon?

    No, unfortunately they are not.”[/b]

    Ross Perot said it back in the 90’s…..that giant sucking sound…..which has now become a roaring, sucking sound….and it won’t blow back this way in our lifetime.

  • A guess here i make. The u.s. Gov is in the asset collection game now. Owning every thing it can get its hands on. Car companies, freddie an frannie mac an thats over 85% of all the home loans in the u.s. An the only thing left out is the energy an power producing companies. Think they are doing this because they know for real there game is almost over. They sold out america an there not much left to loot away. An when the big day comes the gov pulls the plug an says there bankrupt. It wont be the end of gov as we know it. They will have a plan to sell what ever the gov owns to people who bought there treasures. An i beleive they will pay off the over sea people first. An also go around the bankrupt laws as they have before. Putting a dead end to capitalism as we know it.

  • And we’ll keep seeing an increase, because this reset bulge carries into late 2011 or early 2012, depending on how you measure it. What’s potentially worse this time, though, is that sub-primes are out of the game. These are supposedly prime loans being reset and going straight to default. Then we’ll get to see a whole new set of excuses and a whole new tap dance as we are presented with irrefutable evidence that “prime” had a peculiar definition during the boom.

  • Pappy

    Another reminder that it truly is ALL ABOUT JOBS. We all agree that something must be done to create or at least preserve Americans’ jobs. Say what you want about the UAW but, God bless them, they tried. That JOBS bank was never meant to have the worker sit at home and collect a paycheck while foreigners were paid to do his work. It was supposed to be a deterrant to shipping jobs offshore or south of the border. The union foolishly assumed that the automakers would have the sense to realize that it made no sense to pay twice for the same labor. Like they say: to AssUMme makes an Ass of u and me.

  • The gov doesnt care about the american people or the country. Other wise it wouldnt make so many new laws that hurts capitalism an is so unconstitutional. They need assets too show for. Because someday close. The people are going to wake up an wonder what there 14 trillion dollars in the red bought. So i see the housing market going down the tubes taking comercial property to.

  • Not so Mad Max

    Entire Subdivisions are going to have to be torn down. Detroit is planning on tearing down entire sections of the city. The real estate both commercial and residential are going to have to find a bottom, I’m hearing 1997 levels (one of the guests on FSN or Karl Denninger I forget which one). So many of the folks who bought because of the tax credit are in for a nasty shock. People no longer have their homes as ATM machines being able to take money out a couple of times a year. So much of the growth based on rising home sales is gone this is the new normal enjoy.

  • Greg

    They’ve been telling people that wealth is a big pie and the rich are eating it all and if we don’t tax them and keep them from eating the pie there won’t be any left for the rest of us! How wrong that is, wealth creates jobs and much more. A rising tide raises all ships, people. They’re not stealing your pie as the government likes to tell you, they’re bakeries and the government is eating your pie.

  • For every dark cloud there is (hopefully) a silver lining. There is one in this disaster as well, if we care to look for it. Those who have been dispossessed of their homes can start over without bank debt. Foreclosure does not just mean Residential Houses.

    You may ask, why not focus on Residential Houses on lots that are in Bank foreclosure?

    Well, for a start, unless you have tens of thousands of dollars, you are not even in the game. Bank-foreclosed homes are auctioned at the courthouse, and usually to the institutional or private investor with lots of money – rarely does the small investor even rate in the bidding game.

    The game the small investor should be in is mainly the Tax Deed sales of land, and rarely, when the opportunity presents itself, of residential property.

  • Teemancan

    Consider this: if you become unable to pay for your home you lose it to one of two entities

    The banksters or the government. This should remind you of who REALLY owns your home. We are all renters…..

  • breezer1

    an interesting read about the when and why of the banking crisis. great historical piece. the bankers manifesto of 1892.
    God bless us all.

  • Joey

    Once they inflate the currency,things will mellow out somewhat. Your savings and retirement will be worth about thirty percent of what they are now. Precious metals will be taken off the private investor arena,and they may make illegal to own and use. I hope we learn our lesson,and get our deficit spending in line after the spanking.

  • Yagster

    Until the tax codes in this country change to encourage companies to stay/relocate in the U.S. we are going to continue to see job losses. A major rewrite of the business tax code is the only thing I can see helping to change this scenario and get Americans back to work.

  • sharonsj

    Let me tell you what else I’ve been reading: banks are NOT listing foreclosed properties in their accounting nor are they putting them up for sale. I saw a chart that showed which banks have foreclosed on thousands on homes but actually list only a fraction of them, sometimes less than 5% of the total. If banks were forced to list how many bad mortgages they actually had, they’d go under.

    If people knew just how bad off the banks were, we’d be taking out our money. I wonder if this is one reason why economists are telling everyone to stash cash under the mattress?

  • stacy

    i rode by a church sign today that said “pray for our missions in hungary and detroit”. does anyone else find it unbelievable that we have missions in this country going to detroit. wow. great job washington.

  • The real problem, and its resolution,is the banks and their greedy wish to recover as much of their capital as they can. If it means holding off ultimate foreclosure results , and they will ask the government to help them. Housing has to come down to the proper ratio with labor of 1950 or so. Then we can start over, and people will pay their mortgages( when they represent true value)

  • Rick

    OK, so eveyone here knows what is going on…Now what?

    Who’s got a plan to fix all of this..Anyone???or is this just the place where we all meet up to tell each other that we know what their plan is…

  • caryn verell

    yep…that giant sucking sound is being heard around the world. if hindsight were 20/20 we would have secure borders, money in the bank, a job we cared about and a house/home that we could afford. the day of 2-4 cars in the driveway, a tv set in every room, a cell phone in every pocket, and a fast food meal every day is OVER…and guess what! we are all gonna have to get used to it and do what we gotta do..quit the unions, buy american products, plant a garden, put what we used to consider “luxury” items back on the shelf, and learn new ways to make a living and survive. and while we are doing all of that, maybe this generation of youngsters will learn from our experiences too.

  • bandv
  • Joey

    @Rick, We could open mineral and oil production,maybe even create a nationalized company. We need to implement some type of tax that will go directly towards the national debt,and it has to be enough to stop the interest accumulating and turn the clock around. Once the debt is paid,eliminate the tax and most of the others also. Then make sure that our law makers adhere strictly to a balanced budget.

  • sharonsj

    Rick, a lot of us know what’s going on, but it’s not going to get fixed. TPTB will not willingly give up power and money, and Congress is a major impediment to any solution.

    We’ve got Republicans saying NO to everything because they think it hurts Obama; they don’t care if it hurts people. We’ve got Democrats who are too damn cowardly to take control. And both parties are corrupt.

    The first solution would be public campaign financing to get big business out of politics. The second would be enforced term limits. The third would be an ethics committee that actually does its job. And fourth would be an audit of the Fed, if not eliminate it entirely. I’d also jail the SEC (present and former members) and most of the CEOs of investment banks.

    Then Congress might enforce our border and immigration laws, our monopoly laws, our consumer protection laws, our worker protection laws, our environmental laws–and so on. Right now too many corrupt agencies take money to look the other way while our country is trashed. Almost none of them have gone to jail either.

    Until these law-breakers are thrown out or thrown in jail (or somehow done away with), we will stay a banana republic.

  • PHC

    I think what this article says was pretty well summed up by George Carlin in his final words to the world…

  • Ohio Loan Officer

    It’s going to take a hard spanking to our lifestyle to get things back on track again.
    The welfare state has to end. We cannot afford Social Security, Medicare, Welfare, ect..
    What did people do before these entitlements?
    Families took care of their own.
    There are as many poor people now as before entitlements.

  • cree

    Was it unions that drove companies/corporations out or was it just plain greed.When I read articals which state that 66% of all American companies and corporations paid not one cent in tax’s but yet combined made over a trillion dollars profit then I PUT IT DOWN TO JUST PLAIN GREED.
    Levi,the last year they operated in the U.S made $11 million in profits,not enough they say so off to Mexico we go,GE filed some 132 tax returns,not a penny owed even tho they had hugh profits,you do the math…

  • Gary

    Greg-you have to first have a ship to raise.

    The rich need to taxed hard and wealth spread around. You are so wrong-are you drinking your own bath water? Can’t you see that the wealth and income inequality is the root of 99% of the problems our country is facing?

  • At this point in time, I think it safe to say that we can put aside the great sucking sound, roaring sound of American jobs lost, to its a “full on Tornado” that is now destroying the job industry in this country. How can you have a jobless recovery? Face it folks, you have to work to get out of debt, if there are no jobs out there, then you can’t get out of debt. If you don’t mine it out of the ground, grow it out of the ground or manufacture it, you do not have anything to support a GDP. Welcome, welcome to the NEW WORLD ORDER, only to get far, far worse…..

  • wake up

    “They” also like to tell us that small business is the backbone of employment in this country. So, while the Big Boys are busy offshoring as fast as possible, the small business is getting pile driven and strangled by an endless sea of regulation, taxation, and fees. Healthcare cost are but one of the many reasons why small businesses are reluctant to add to the payrolls. Govt. needs to get their fingers out of our pockets and get the hell out of the way if they even have the slightest hope of this country becoming prosperous once again. Fat chance!!

  • We did not have a choice as whether to compete on the global labor market or not. It was completely inevitable. The only way that we can go back to a closed society is with an extremely severe police state. If this happens, I for one, will begin to develop a black market business and smuggle something from mexico. As we know, the border is so porous you could drive a vanload of illegals through it in the middle of the night and no one sees it happening. They can’t cure stupid and they can’t stop capitalism. Power to the people!

  • What would happen if banks were required to sell foreclosed houses (for whatever price they can get) within 6 months or 1 year of taking possession of them? This would force the banks to address the problem, help the housing market find its bottom faster, and prevent the waste of dwellings that people could live in.

    I do agree with some of the commentators that ultimately our problem is Global Labor Arbitrage–foreign outsourcing, H-1B and L-1 visas, and mass immigration. Unfortunately, our politicians won’t even acknowledge it as a problem.

  • Yah, foreclosures are going up up and away…with no end in sight.

    As they should.

    Lets just hope the government gets out of the way and lets this crash as it should so we ALL can get a move on.

  • Has anyone ever heard of UNIONS? It’s no wonder jobs are being exported!

  • Why are we in such dire straits? Three proper nouns:

    Chris Dodd
    Barney Frank
    Barack Obama

  • CH

    Unemployment may be the primary driver behind foreclosures right now, but there are still a lot of bad loans out there. Additionally, negative equity is a pretty good predictor of foreclosure, which does not bode well for several states, including CA, AZ, MI, NV, and FL. CoreLogic released a negative equity report this week that showed that Nevadans owed around $23 billion more on their houses than they are worth. NV is the only stated in the union with overall negative equity. Look for lots more foreclosures in that state for sure.

Finca Bayano

Panama Relocation Tours



Facebook Twitter More...