Raleigh-Cary foreclosures up; MSA in middle of pack nationally (Source: Triangle Business Journal)

The Raleigh-Cary Metropolitan Statistical Area finished middle of the pack in a recent survey of foreclosure rates in the nation’s 100 largest MSAs. Raleigh-Cary had the 51st highest foreclosure rate in the RealtyTrac ranking, which measured the number of homes entering some stage of foreclosure in the 2006 third quarter. According to the study, Raleigh-Cary recorded 862 total foreclosures in the third quarter, or approximately one for every 382 households in the area. Foreclosure activity in Raleigh-Cary was up nearly 6 percent from the second quarter. The Raleigh-Cary foreclosure rate was slightly better than the national foreclosure rate of one home for every 363 households. More than 318,000 homes entered some stage of foreclosure during the 2006 third quarter across the United States . The Charlotte-Gastonia MSA reported the highest foreclosure rate of North Carolina metros included in the report, with one foreclosure for every 250 households. Charlotte ranked 33rd highest on the list. Greensboro-High Point — the only other North Carolina metro on the list — had the 16th lowest rate on the survey, with one foreclosure for every 923 households. The Detroit-Livonia-Dearborn MSA in Michigan posted the worst foreclosure rate in the nation, with 10,316 homes entering foreclosure during the third quarter, or approximately one for every 80 households. RealtyTrac is an online marketplace for foreclosures.  

Savvy Investors Profit from Rise in Foreclosure Rates (Real Estate News)

Foreclosures experienced a 72% rise since the beginning of 2005

U.S. mortgage companies are headed for total collapse – here are the reasons why?

The refinancing bubble has burst. As people just cannot pay their mortgage with home equity (prices) falling and short-term rates rising, the mortgage-banking sector is in total collapse. The mortgage default rates in February seem to be higher than January, which was a record any way. The backfiring of excessive risk taking (typical of the bubble, it has happened before in 1920s and mid eighties) is so severe that the mortgage banks will soon ask for Government bail out. Fannie May is also in trouble. Federal Reserve is scratching its head to find a way out of the real estate and mortgage banking mess. The biggest part of the problem has not started even! The mortgage defaults will cause the banking sector to collapse and will drag the economy to its knees. All on a sudden people will realize it’s the song of deflation not just disinflation. At that stage the economy will get depressed and the real trouble will start as underemployment changes into outright unemployment. The defaults in mortgage payment will rise to levels far exceeding 1929-34. The mortgage banks will go belly up. In the main street, there is a tremendous hatred and opposition against mortgage brokers and bankers.  

Suffering of blacks on foreclosure in USA!

The news article by Jason Szep on Tuesday March 20th stated clearly that racism prevails in many areas in USA where they suffer most from the foreclosure increments. In BOSTON a black couple Barbara Anderson and her husband have been under misery. They were one of the first few people to move into the white neighborhood, and the racism was such that people burned her garage in front of her. In 2007 Anderson came under a much different form of inequity as brokers of subprime mortgages started to attack on weak credit borrowers. According to Anderson these subprime lenders make deals of such nature that it leads them to bankruptcy. She says their home was almost foreclosed but another bank gave them a second chance and provided them with a loan. All this stress had made Anderson a patient of high blood pressure, headaches and stomach problems. This is happening in many areas of United States that blacks and Hispanics are given a high-cost, subprime mortgage when planning to purchase a home than whites; this becomes a cause of increase in foreclosures in deprived and mostly black neighborhoods throughout the country. Sometimes predatory lenders give blacks and Hispanics a high price loans even though they deserve a cheaper one because of their credit situation. According to Jim Campen, a University of Massachusetts economist the low income and poverty status of blacks and Latinos puts them in the group where they receive higher percentage of subprime loans; however some lenders add a 3% interest rate on top of this which leads to foreclosure many times.