January 15, 2009 - Posted by Tyler Lewis
There were more than 3 million foreclosure filings in the United States in 2008, according to RealtyTrac data released today.
This number represents an 81 percent increase over filings in 2007, and a 225 percent increase over filings in 2006. Some economists predict that foreclosure rates could continue to rise through 2011.
A bill that will give bankruptcy judges the authority to restructure mortgages in default and slow the tide of foreclosures has been pending in Congress for over a year, but is likely to pass this year.
"[J]udicial modification of loans in bankruptcy court is available for owners of commercial real estate and yachts, as well as subprime lenders like New Century and investment banks like Lehman Bros., yet it is denied to families whose most important asset is the home they live in…Eliminating this exception would immediately help stem the tide of foreclosures at zero cost to the U.S. taxpayer," said Michael Calhoun, president of the Center for Responsible Lending, in a January 13 hearing on the foreclosure crisis in the House of Representatives.
Categories: Housing & Lending
