"The /foreclosure/ numbers continue to go up frankly because none of the /prevention/ programs that have been adopted so far have had any material effect." Rick Sharga, VP Marketing, Realtytrac (Realtytrac specializes in providing data and services regarding foreclosures in the United States.)
From Realtytrac's website:
“State legislation that slowed down the onset of new foreclosure activity clearly had an effect on fourth quarter numbers overall, but that effect appears to have worn off by December,” said James J. Saccacio, chief executive officer of RealtyTrac. “The big jump in December foreclosure activity was somewhat surprising given the moratoria enacted by both Freddie Mac and Fannie Mae, along with programs from some of the major lenders and loan servicers aimed at delaying foreclosure actions against distressed homeowners.
“Clearly the foreclosure prevention programs implemented to-date have not had any real success in slowing down this foreclosure tsunami. And the recent California law, much like its predecessors in Massachusetts and Maryland, appears to have done little more than delay the inevitable foreclosure proceedings for thousands of homeowners.”
Realtytrac issued a report this morning that 2.3 million properties were subject to a foreclosure filing in 2008, a 81% increase from 2007. When considering that foreclosure filings had spiked higher in 2007 also, this is a gargantuan increase -- up 225% since 2006. Foreclosure filings were up 17% just in the month of December alone! It is a stark jolt back to reality, especially when during this same period, the government has been bending over backwards to modify mortgages and keep people in their homes that couldn't pay their mortgages. Realtytrac also reports that there are currently more than 1.5 million foreclosed properties in the system.
