According to RealtyTrac, the number of foreclosure filings hit a record high in the third quarter. "They were the worst three months of all time," a spokesman for RealtyTrac said.
This crisis would not be occurring now if the Homeowner and Bank Protection Act, authored by Lyndon LaRouche, had been implemented in 2007. But unfortunately, Barney Frank and Company intervened to prevent that from occurring. By doing so, Barney Frank and his allies in the U.S. Congress have caused this mass suffering on the part of U.S. citizens.
According to RealtyTrac, during the third quarter, 937,840 homes received a foreclosure letter. That means one in every 136 U.S. homes were in foreclosure, which is a 5% increase from the second quarter and a 23% jump over the first quarter. In Nevada there was one filing for every 23 households. During the quarter there were 237,052 repossessions, a 21% jump from the previous three months. So far this year, lenders have taken back 623,852 homes.
These figures severely understate the actual level of the crisis, in that lender and government actions have delayed many filings. As a result, some delinquencies have not been counted on the foreclosure tallies.
Because there are so many delinquent borrowers, banks are reluctant to take back their properties and flood the market with the repossessed homes. As the spokesman for RealtyTrac said, "It's hard to envision the banks putting millions of properties up for sale and cratering prices."
Two factors which are making the situation even worse are the rising unemployment and the ticking time bomb of option adjustable-rate mortgages, which are now resetting to significantly higher payments.
Combine this worsening crisis in respect to residential mortgages with the growing crisis in the commercial real estate market, and you are looking at a mix which is about to explode.