US housing problems by Claudia Sonea

Apparently Wall Street concerns regarding house slumps are not without reason. Irvine, California.-based RealtyTrac Inc. revealed the number of foreclosure filings were up 115 percent from 113,300 last year in the same month, August. Also there is even a striking difference from one month to another, so from July to August the number jumped 36 percent, proving that more and more people are unable to make timely payments on their mortgages or sell their homes due to the national housing problem. Default notices, auction sale notices and bank repossessions were among the filings. According to RealtyTrac Chief Executive James J. Saccacio as a large number of subprime adjustable rate loans will reset and it will lead to a new wave of increased foreclosure activity. The main problem is subprime loans and adjustable rate mortgages, because in the beginning the rates were more than acceptable, but in time the banks increased them leaving the borrower without the possibility of paying. There are also figures that show that many of the houses end up back to the borrowers due to the fact that they are not picked up in the estate sales. In August the number of repossessions reached 42,789, the highest foreclosure rates in the country being registered in Nevada, California and Florida. Nevada reported one foreclosure filing for every 165 households, California one filing for every 224 households, while Florida had one foreclosure filing for every 243 households. The 10 states with the highest foreclosure rates were Georgia, Ohio, Michigan, Arizona, Colorado, Texas and Indiana. How will this influence the stock market and how will it be affected by the Fed decision? There is no good forecast for the next month for Wall Street. Stay connected and track to see where everything is heading.

related story: http://news.yahoo.com/s/ap/20070918/ap_on_bi_ge/foreclosure_rates;_ylt=AgQoMICw4XvXni7rrnpgIfms0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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