Housing Crisis Continues To Explode
Bank repossessions doubled in March rising to 57 percent while the Senate and House continue to haggle over the best resolution to the housing crisis. Last month the foreclosure listings rose to 5 percent equaling 234,685 US homes receiving default notices. The hardest hit states were Nevada, California, and Florida. Bank repossessions climbed 129 percent from just a year ago.Reality Trac, one of the nation’s foremost real estate experts said that we will see the possibility of a record amount of foreclosures in the third or fourth quarter of this year. There is simply no end in sight to the housing crisis yet.
Borrowers who overextended themselves in order to buy homes they really could not afford plus using “highly toxic” loan products so they could buy homes are getting the brunt of the problem, said Rick Sharga of Realty Track. Foreclosures continue to rise, which will further depress prices because supply far exceeds demand. America will continue to count billions of dollars in losses as sub-prime mortgages come due this year.Wachovia, the fourth largest bank in America, blames the jump in foreclosures in California and Florida for a $2.8 billion write down, giving the bank a loss of $393 million so far.
The Spanish Government has announced plans to spend €10 billion (£8 billion) a year in an economic stimulus package intended to soften the blow of a looming housing crisis.
Almost 600,000 people will be unable to refinance their debts this year after finding their usual lines of credit cut off, forcing them to go bust or sign expensive “bankruptcy-light” agreements in Britain.
The world faces a fretful start to 2008, with global credit markets in the grip of a severe squeeze triggered by the housing market crisis in the United States and the resulting huge losses on risky lending.
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