Phillip Tilley

The other foreclosure crisis

June 3, 2010 |  6 comments
Image Credit: sxc.hu Last month 92,000 homes were seized by Banks in foreclosures. That is a record number for a single month. More than 10% of homeowners with a mortgage missed at least one payment, and Freddie Mac reported a record 4% of its borrowers are at least three months behind on payments. Freddie Mac chief executive Charles Haldeman said there is “a potential large wave of foreclosures” still to come.

Washington reported the “mortgage crisis” is dragging on the economic recovery as more homeowners fall behind on their payments. In the same breath they reported the good news is that foreclosures are down 2% from the same time last year. This of course contradicts the report that a record number of homes were sieved by Banks. Truly fewer people have houses to be taken away because they have already been taken. And the old adage that if you laid all the economists in the world end to end they could not reach a conclusion is true.

As the number of homeowners gets smaller the number of former homeowners gets larger. That is simple math. It could be said that people who are homeowners are homely and people who are former homeowners are homeless. If the housing picture is not pretty at least the people who are former homeowners are less homely.

On the flip side is the fact that as home prices plunge more people are able to afford buying a house. Sales of previously occupied homes rose last year for the first time in four years as the prices plunged more than 12%. That is the sharpest drop since the first Great Depression.

Patrick Barkey, director of the Bureau of Business and Economic Research at the University of Montana reported that housing construction fell an average 70% nationally. “There is no sign of a quick return in construction. The adrenalin is not coming back,” he said. He further reported the Millennial Depression trashed wealth. The stock market collapse and the housing meltdown ate away $17 trillion in household assets from U.S. families.

Realty Trac reported that once the value of a house falls below what the owner owes, the likelihood of foreclosure increases. 20% of homeowners had negative equity at the end of last year. That means a record three million foreclosures are likely in 2010.

Now to the “other foreclosure crisis” I mentioned. Some people actually own their houses outright, they are paid for and they have no mortgage payments. However they still have to pay property taxes every year. When this new economic crisis hit some of these people found themselves unable to pay their property taxes. After not paying for three years the property is seized by the government.

Since the first group missed their property tax payments in November of 2007, the first tax foreclosures will start in November 2010 this year. Happy Thanksgiving, get out! Wake up people, the money matrix has you!

Phillip Tilley is author of The Money Matrix of the New World Order and other articles.[!gad]Last month 92,000 homes were seized by Banks in foreclosures. That is a record number for a single month. More than 10% of homeowners with a mortgage missed at least one payment, and Freddie Mac reported a record 4% of its borrowers are at least three months behind on payments. Freddie Mac chief executive Charles Haldeman said there is “a potential large wave of foreclosures” still to come.

Washington reported the “mortgage crisis” is dragging on the economic recovery as more homeowners fall behind on their payments. In the same breath they reported the good news is that foreclosures are down 2% from the same time last year. This of course contradicts the report that a record number of homes were sieved by Banks. Truly fewer people have houses to be taken away because they have already been taken. And the old adage that if you laid all the economists in the world end to end they could not reach a conclusion is true.

As the number of homeowners gets smaller the number of former homeowners gets larger. That is simple math. It could be said that people who are homeowners are homely and people who are former homeowners are homeless. If the housing picture is not pretty at least the people who are former homeowners are less homely.

On the flip side is the fact that as home prices plunge more people are able to afford buying a house. Sales of previously occupied homes rose last year for the first time in four years as the prices plunged more than 12%. That is the sharpest drop since the first Great Depression.

Patrick Barkey, director of the Bureau of Business and Economic Research at the University of Montana reported that housing construction fell an average 70% nationally. “There is no sign of a quick return in construction. The adrenalin is not coming back,” he said. He further reported the Millennial Depression trashed wealth. The stock market collapse and the housing meltdown ate away $17 trillion in household assets from U.S. families.

Realty Trac reported that once the value of a house falls below what the owner owes, the likelihood of foreclosure increases. 20% of homeowners had negative equity at the end of last year. That means a record three million foreclosures are likely in 2010.

Now to the “other foreclosure crisis” I mentioned. Some people actually own their houses outright, they are paid for and they have no mortgage payments. However they still have to pay property taxes every year. When this new economic crisis hit some of these people found themselves unable to pay their property taxes. After not paying for three years the property is seized by the government.

Since the first group missed their property tax payments in November of 2007, the first tax foreclosures will start in November 2010 this year. Happy Thanksgiving, get out! Wake up people, the money matrix has you!

Phillip Tilley is author of The Money Matrix of the New World Order and other articles. Comments (6)

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