1 in 33 Homeowners Projected to Be in Foreclosure Within the Next Two Years

[Purveyor]

Source: Pew Charitable Trusts

WASHINGTON, April 16 /PRNewswire-USNewswire/ -- One in 33 homeowners is projected to be in foreclosure primarily over the next two years, as a result of subprime loans made in 2005 and 2006, according to a new report released today by The Pew Charitable Trusts. In some states, the outlook is especially grim; for instance, nearly one in 11 homeowners in Nevada is projected to be in foreclosure and one in 18 Arizona homeowners may face the same circumstance over the next two years.

Homeowners being foreclosed upon may not be the only homeowners affected, according to data cited in the report. An additional 40 million neighboring homeowners may see their property values and their municipalities' tax bases drop by as much as $356 billion, largely over the next two years.

Defaulting on the Dream: States Respond to America's Foreclosure Crisis is the first-ever, comprehensive look at what all 50 states and the District of Columbia are doing to try to address the subprime mortgage fallout. The report finds that more often than not, states are at the forefront of developing policies and programs aimed at preventing more irresponsible loans from being made and improving residents' ability to stay in their homes. The report highlights states that are making headway to strengthen loan underwriting standards and help borrowers avoid foreclosure -- and underscores that any federal legislation must complement the work being done in the states, not compromise it.

--
"Stronger standards from federal policy makers could have helped avert this crisis," said Shelley A. Hearne, Managing Director of Pew's Health and Human Services Program. "Future legislation must consider ways to strengthen standards to prevent more troubling loans from being made. Let's make certain federal laws build upon, rather than preempt, the strong and smart state efforts already underway and ensure that states retain flexibility to respond to local circumstances."

--
Pew's research analyzes two principal data sets: the Mortgage Bankers Association (MBA) 4th Quarter National Delinquency Survey and the Center for Responsible Lending's (CRL) foreclosure projections and Subprime Spillover data. (CRL is a partner in Pew's Family Financial Security portfolio, which seeks to advance common-sense solutions to help Americans save for tomorrow and manage debt today.) Both data sets are widely cited and used to understand the nature and magnitude of the nation's foreclosure challenges. Researchers also conducted extensive interviews and used other data sources to identify state action to address the mounting foreclosure challenges facing the country.

Read more: http://www.earthtimes.org/articles/show/1-in-33-homeowners-projected,354835.shtml

[liberal N proud]

1. Breaking the middle class

[Leftist Agitator]

2. What will we call Bush's Hooverviles?

Bush camps? Dubya Digs?

I read a BBC article a few weeks ago about a tent city in L.A.

1 in 33 nationwide? 1 in 11 in Nevada?

We'll be seeing tent cities spring up all over America in the next few years.

[Purveyor]

4. Mindboggling numbers, indeed! I thought I had heard wrong when this was reported on ABC radio news.

The economic situation seems to be getting worse by the day. Almost regret listening to the latest reports.

[OneBlueSky]

12. well, Bush sure as hell won't care . . . he'll be safely ensconced in his villa in Paraguay . . .

sharing gin and tonics with his next door neighbor, Rev. Moon . . . no doubt guarded by Secret Service agents AND US troops, don'tcha know . . . wonder what he and the "King of the World" are plotting for their little South American getaways . . .

[Leftist Agitator]

13. German fascists fled to S. America in the 1940s...

Why should American fascists sixty years later behave any differently?

[CountAllVotes]

3. it is going to get very ugly

and yes, I feel sorry for people losing their homes! Thanks a lot for 7-1/2 years of pure SH*T *! Now we know why an MBA is absolutely USELESS!! :mad:

:dem: :kick:

[Leftist Agitator]

5. And to think that my MBA-possessing cousin laughed when I told her...

That I was going to graduate school to study history.

[CountAllVotes]

7. history is a far better subject to learn

as you learn about the PAST and the MISTAKES made by our predecessors.

I too have an advanced degree in a history related subject and I don't regret it one bit. I studied economics for a couple of semesters and frankly, it was a bunch of useless crap to me.

:kick: for history !

[Leftist Agitator]

9. I actually enjoy macroeconomics...

But other than that, it's a bunch of useless BS.

In studying history, one learns more than facts about the past, one learns about different ways to think about the past. Very useful in analyzing situations in the present day, I must say.

[Jimbo S]

18. I have yet to meet an MBA that has impressed me.

Sorry to say that about your cousin, but those are my thoughts.

My quality engineering professor in college had a pet peeve regarding MBAs. All they're about is the bottom line, they know nothing regarding processes or customer relations.

[lonestarnot]

6. And 1 in 10 projected to be on food stamps. But bailout for by Senate corporate home developers

bill pending House approval. Hoy boy.

[CountAllVotes]

8. and to qualify for food stamps

one must be about dead broke. I was on food stamps briefly about 20 years ago for 2 months. Yes, I was broke and unemployed and had a whopping $100 to my name and that WAS IT.

So much for the "welfare queen" dogma eh? Soon 1 in 10 Americans will be deemed a "welfare queen (or King?)" by those that use such inflammatory labels for those that are have fallen upon hard times. I hope they don't run out of food stamps!

A Hard Rain in about to Fall!!! :scared:

:kick:

[lonestarnot]

15. I had the experience once. Very lovely. $10.00 worth a month. LOL

Try eating off that for a month. Dirt cake substitutes and food riots coming.

[MilesColtrane]

10. Yes, it's the glorious fulfillment of Bush's pwnership society.

[qanda]

11. A friend of ours was just served with papers to vacate his property

I don't think he knows what he and his wife are going to do. He had a trucking company and was forced to go out of business because of the gas prices. I feel so bad for him as his five year old grandson was tragically killed just a few weeks ago and now this.

[Lance_Boyle]

14. the foreclosures need to happen to pop the bubble

and bring home prices down to where they belong. Sucks for people who borrowed unwisely and are losing the houses they can't afford, but then there are TONS of people who were smart enough NOT to take the gimmick mortgages and were priced out of the market. They may do well in this.

I am opposed to any bailout that keeps people in homes they can never realistically afford to own. This prolongs the deflation of the bubble unnecessarily, and results in a new round of foreclosures however many years down the line when the bailout provisions expire. Better, I think, to suck it up now and let the mass suffering occur under this Republican administration than to bail out the unwise and let the misery set in during Obama's first term.

[fasttense]

16. There were about 73.8 million homeowners in 2004

That means about 2.2 million families will be foreclosed upon. The average size of a US household is 2.5 people. That means over 5 million people, men, women and children, will be evicted from their homes in the next two years.

I hope Greenspan sleeps well at night.

[Javaman]

17. But but but...

he says it's not his fault and to stop blaming him!

:banghead: