National Foreclosures Increase Almost 19% in October
RealtyTrac, the leading online marketplace for foreclosure properties, today released its October 2005 Monthly U.S. Foreclosure MarketReport, which showed 81,382 properties nationwide entered some stage of foreclosure in October, an 18.6 percent increase from the previous month. The report shows an October national foreclosure rate of one foreclosure for every 1,422 U.S. households.
New Jersey foreclosure rates were the highest in the country, with one foreclosure for every 422 households, and New Mexico foreclosures ranked third highest, with one property in every 601 in foreclosure.
Grim – do you have any stats on how this compares year over year, or in terms of all time highs?
The buyers are sniffing to much toxic waste.
Then when they come out of their delusional buy purchase realize the it’s time to go bust.
Keep an eye out for the Consumer Confidence numbers, as well as New Home Starts at a bit after 10am this morning.
No, I don’t have anything off hand, I’ll see what I can find.
here is my question. I know you can uusally get a good deal on a forclosed house (if you know what you are doing)
But, if say someone has a 550k I/O mortgage that they got in 2004. They do not play much of the principal, and they still owe 525k when it goes into forclosure.
say by the time this happens, the comprable houses in the area are down to 450k since the market dipped.
Now how does the bank get their money back, because technically the are under on the house, and unlike the person who can walk away, they are stuck holding this house. will they sell at a loss?
New Jersey Foreclosure Laws
The bank will sell the property at aa loss and then sue for the difference. The new bankrupcy laws mean bankrupcy is not an option for many, and they can’t simply turn in the keys and walk away. The prior owner can be saddled with that debt.
Even if the prior owner somehow gets away without having to pay the difference, they’ll still owe Ol’ Uncle Sammy (the IRS) quite a bit of cash. I believe the elimination of debt is treated as income and taxed as such.
Lots of suckers going to get wiped out as this collapse unfolds. I said unfolds b/c the collapse has already started just do not expect a realtor to offer this info.
thanks a lot grim, I knew you would know the answer!
I think 2008-09 will be the BIG forclosure years. 04′ and 05 had so many shaky loans with variable rates, when the 5 year period is up there will be a lot of people looking to get out