Friday, February 12, 2010

U.S. Foreclosures Up Again

U.S. President Barack Obama

U.S. foreclosure rates have spiked yet again, proving not enough is being done by the government and banks, to help home owners out of a national rut.

U.S. Foreclosure Filings Surpass 300,000 for 11th Month in Row

February 11, 2010, 12:46 PM EST - Feb. 11 (Bloomberg) -- U.S. foreclosure filings rose 15 percent in January from a year earlier and exceeded 300,000 for the 11th consecutive month as modification programs failed to keep delinquent borrowers in their homes, RealtyTrac Inc. said.

A total of 315,716 properties received a notice of default, auction or bank seizure last month, or one in 409 households, the Irvine, California-based seller of default data said today in a statement. Filings fell 10 percent from December.

Bank seizures, also known as real-estate-owned or REOs, may rise to a record 3 million this year, RealtyTrac said last month. About 66,000 delinquent loans out of a targeted 4 million by 2012 were permanently modified as of Dec. 31 under the Obama administration’s Home Affordable Modification Program, according to the Treasury Department. About 787,000 mortgages are in trial programs that change loan terms, the Treasury said Jan. 19.

“It’s almost inevitable that modifications will fail,” Michelle Meyer, New York-based U.S. economist for Barclays Capital Inc., said in an interview. “Over the next several months, we should see REOs increase at an accelerated pace.”

Foreclosure filings also fell in January of last year from December, only to rise in subsequent months, RealtyTrac said.