[GJM] Fw: [globalnetnews-summary] Foreclosures spike 112% - no end in sight

[mary rose]

It is my hope that individuals and communities are preparing to handle
the continuing post traumatic stress disorder that will be incurred by
thousands of people distressed with losing their homes.and/or jobs
in this economic downturn.  Remember that Tai Chi and Qi Gong are
good remedies for PTD.

And, as well be prepared to offer extra rooms in one's home to those
who are overcome by misfortune. A fair exchange might be to provide
room and board in exchange for gardening and other services, including
a little cash for personal needs as well.

I am holding the field for the fullest potential to unfold in this event now 
in
the best interests of all concerned.

mary rose

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Subject: [globalnetnews-summary] Foreclosures spike 112% - no end in sight



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Foreclosures spike 112% - no end in sight
More than 155,000 families have lost their homes to foreclosure this year; 
one out of every 194 U.S. households received a foreclosure filing.
Last Updated: April 29, 2008: 9:09 AM EDT
http://money.cnn.com/2008/04/29/real_estate/foreclosures_still_rising/index.htm


NEW YORK (CNNMoney.com) -- Foreclosure filings in the first three months of 
2008 rose more than 112% over last year, according to a study released 
Tuesday.

Real estate information firm RealtyTrac reported that nearly 650,000 
foreclosure filings - which include notices of default, auction sales and 
bank repossessions - were issued in the first quarter. That represents 1 of 
every 194 households and marks a 23% increase from the last quarter of 2007.
Housing bust: Tell us your story

So far this year 156,463 families have lost their homes to repossessions.

"Foreclosure activity hasn't slowed down yet," said Rick Sharga, spokesman 
for RealtyTrac. "But I was a little surprised that foreclosure filings more 
than doubled since last year."

Foreclosures increased in 46 states and in 90 of the nation's 100 largest 
metro areas. Some regions that had been only marginally hurt by the mortgage 
meltdown recorded large increases in filings. In Connecticut, for instance, 
filings tripled compared with the first three months of 2007. Massachusetts 
recorded a 260% increase.

Nevada: Hardest hit

The worst hit states are still clustered in the Southwest; Nevada, 
California and Arizona lead the nation in foreclosure filings. Prices ran up 
rapidly in these areas during the bubble years as speculators snapped up 
single-family homes and condos as investments.

In the first quarter, 1 of every 54 homes in Nevada received some type of 
foreclosure filing - more than any other state. Its largest city, Las Vegas, 
had 1 out of every 44 homes go into foreclosure.

Stockton, Calif., had the highest foreclosure rate out of any U.S. metro 
area, with 1 out of every 30 homes receiving a notice - nearly seven times 
higher than the national average. The Riverside/San Bernardino region had 
the second highest rate in the quarter, with one of every 38 homes in 
default.

Only two metro areas in the ranks of the 20 hardest hit were outside the 
Sunbelt - Detroit, which ranked sixth in the nation with 1 in every 68 
households in default, and Cleveland which saw 1 in every 105 homes go into 
foreclosure.

The news comes despite increased foreclosure prevention efforts by lenders 
and community organizations. Hope Now, the coalition of mortgage lenders, 
servicers investors and community groups, announced Monday that it helped 
over a half a million home owners avoid foreclosure during the first three 
months of the year.

And some local governments have stepped up their programs to help borrowers, 
according to RealtyTrac CEO James Saccacio.

"For example, in late March Philadelphia issued a temporary moratorium on 
all foreclosure auctions for April," he said. "The city has since adopted a 
program that will delay foreclosure proceedings on owner-occupied properties 
until the owners have met face-to-face with lenders to attempt to create a 
loan workout plan that would prevent foreclosure."

More trouble ahead

Additionally, lawmakers in Washington, D.C. are at work on several plans 
that would deliver foreclosure relief to distressed borrowers.

All of these foreclosure prevention efforts may not be able to stand up to 
the tsunami of foreclosures on the way. Sharga says that a record number of 
hybrid adjustable rate mortgages (ARMs) - worth $362 billion - will reset in 
2008.

These so-called "exploding ARMs" usually have low introductory interest 
rates that reset much higher after two or three years, and then re-adjust as 
often as every six months after that. Unless these loans can be reworked, 
many will fail.

"We expect to see another foreclosure peak in the late third or fourth 
quarter of the year," said Sharga, "because of the record number of resets 
coming." To top of page