U.S. Housing Market being hit badly by the sheer volume of houses going into foreclosure hit a new record a 1.5 Million Foreclosure Filings. Recent job losses and falling property hikes deepened the house market recession.
More than 1.5 Million home owners’ received an auction notice or default or were seized by banks in the last six months through June, according to the Irvine, a California-based seller of default data. A huge 15 percent hike from the year earlier. 1 in 84 of U.S. households received a filing.
According to Richard Green, director Lusk Center for Real Estate at University of Southern California ; “People are losing their jobs, seeing their income go down and are underwater on their mortgage……….. It’s a toxic combination”.
20 major major U.S. metropolitan areas suffered a drop in housing prices, almost 18.1% drop in April from a year earlier, according to the S&P/Case-Shiller index. Also, the unemployment rate climbed to 9.5% in June, a record since 1983, bringing number of lost jobs to a total of almost 6.5 Million since the economic slump (started in December 2007), the Labor Department said.
Default spread through Borrowers with poor credit histories spurred for the housing market recession and spread next to the prime borrowers as sales decreased. On May 28th, the Mortgage Bankers Association said that prime fixed-rate home loans to the most creditworthy borrowers accounted for 29% of new foreclosures in the first quarter, the biggest share of any type of loan.
1/8 Americans is now late on a payment or already in foreclosure, the Washington-based mortgage group said.