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Get Ready for New Wave of Foreclosures

By Kevin Spak,  Newser Staff

Posted Jul 4, 2009 6:05 PM CDT
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(Newser) – Another wave of foreclosures is on the way, possibly as early as this summer, threatening to upend a housing market that had begun to stabilize, the LA Times reports. Though loan defaults are up sharply, banks have been delaying foreclosures lately thanks to the Obama administration’s home-stability plan. Now with many government and self-imposed foreclosure moratoriums set to expire, big lenders have signaled that they’ll be cleaning house.

Rising foreclosures will further depress home values that had begun to bottom out or, in some parts of the country, even rise. One Moody’s economist estimates that 15.4 million homeowners are underwater, owing more than their house is worth. A Chase Bank spokesman says that that in addition to many new foreclosures, the bank will be moving again on 80,000 foreclosures it had voluntarily suspended.

Old furniture is left on property identified by a local real estate agent as a foreclosed home in the 35th Congressional District represented by Maxine Waters, D-Calif., in Los Angeles, June 5, 2009.
Old furniture is left on property identified by a local real estate agent as a foreclosed home in the 35th Congressional District represented by Maxine Waters, D-Calif., in Los Angeles, June 5, 2009.   (AP Photo/Damian Dovarganes)
In this May 7, 2009 photo, hiring and foreclosure signs are posted at a career center in Oakland, Calif.
In this May 7, 2009 photo, hiring and foreclosure signs are posted at a career center in Oakland, Calif.   (AP Photo/Paul Sakuma)
In this Feb. 17, 2009 file photo, a foreclosure sign sits outside a home for sale in Phoenix.
In this Feb. 17, 2009 file photo, a foreclosure sign sits outside a home for sale in Phoenix.   (AP Photo/Ross D. Franklin, File)
In this March 24, 2009 file photo, a sign lies on the ground in front of a foreclosed home in Homestead, Fla.
In this March 24, 2009 file photo, a sign lies on the ground in front of a foreclosed home in Homestead, Fla.   (AP Photo/J Pat Carter, File)
A for sale sign hangs in front of a Homestead, Fla. home Tuesday, March 24, 2009.
A for sale sign hangs in front of a Homestead, Fla. home Tuesday, March 24, 2009.   (AP Photo/J Pat Carter)
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COMMENTS
Showing 2 of 2 comments
riffran
Jul 5, 2009 12:31 PM CDT
im with you two "fellers"......
suiteharte
Jul 4, 2009 11:35 AM CDT
Maybe if the stimulus money had gone to the people that owed the bills instead of going to the people that owned the bills, these houses would be a little less upside down
US • Money

 
housing market • housing • home prices • foreclosures

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