Over one Million People Lost their Home in 2008

Posted by: Chris Palmeri on January 14, 2009

foreclose.bmp

Foreclosures.com came out with its latest numbers today, a 63 percent rise in foreclosures for 2008, with a total of about 1 million throughout the year. The foreclosure process was begun on 2 million during 2008. Of those, 1.6 million were in the southern and western states as you can see by the chart above.

Alexis McGee, president of Foreclosures.com, believes the worst is behind the housing market. She’s says housing affordability is better than it’s been since 1994, when a mortgage on a median-price home equaled 18 percent of the median income. Dropping interest rates on mortgages have improved this even more. Plummenting housing construction and a growing US population ultimately mean an increased demand for housing. Unemployment, while rising sharply, is still below where it stood in the 1990-1991 recession and well below the highs of the early 1980s.

“Don’t expect another tidal wave of foreclosures this year, either, just because more adjustable rate mortgages are due to reset,” McGee says. “Current mortgage rates are at 30 year lows and dropping. Those who qualify will be able to refinance and enjoy lower monthly payments, not higher ones. Those that can’t will end up either selling their homes pre-foreclosure or losing them to foreclosure. But I am anticipating our market can absorb this inventory.”

Reader Comments

Mark

January 14, 2009 4:45 PM

Who knows if they lost their primary residence? if only 2nd, that's nothing. 1 million is not that much when you consider how much overbuilding there were. I am gloomy about this year also, fed is doign what they can, still the situation is not gonna get better any time soon.

Mark Kreyche

January 14, 2009 9:55 PM

I agree with Mark. I don't think the storm has passed just yet. With more mortgage resets coming this year into the middle of a recession, it may be a little too soon for homebuyers to have the confidence necessary to stabilize this market. Maybe by mid to late summer though!

Liza

January 15, 2009 2:24 PM

We'll learn from what's happened so that the so called 2nd wave of foreclosures will not be as bad. There are already measures being put into play.

Gerda Lacey

January 16, 2009 9:51 AM

and if that is not bad enough, the forecast for 2009 is equally dismal...yet the government continues to help banks consolidate and get bigger so that when they crash the pain is harder and the problems remain unsolved.

Gerda Lacey

Peter Knight

January 17, 2009 10:51 AM

This is nothing to do with property but I wanted to make a general comment on BW.

For what it's worth, I really like the lay out of the magazine (large page numbers, sensible "contents" list, blue color "personal business section, reasonable length articles)- it works!

Paul

January 18, 2009 8:38 AM

This number only shows part of the picture. First off, Mortgage companies are having a much harder time selling these foreclosures than in the past and taking much bigger losses per house. Secondly, many companies have slowed down their foreclosure process figuring it is better to have someone in the house (even if not paying) than having it sit empty and subject to getting trashed. Lastly, You can not compare unemployment rates between now and 1990 (much less 1981-82) because in the early 90's they changed the way they calculate the generally reported rate to remove a large number of people out of the unemployment calculation (basically those who have been out of work for more than a year).

sjfone

January 18, 2009 3:29 PM

Do not take out mortgages you cannot afford.

madmilker

January 19, 2009 3:56 PM

People in America need to realize jus what got America in this shape...cheap... yes so-call cheap items from a foreign land.

quote*Wal-Mart firmly believes in local procurement. We recognize that by purchasing quality products, we can generate more job opportunities, support local manufacturing and boost economic development. Over 95% of the merchandise in our stores in China is sourced locally. We have established partnerships with nearly 20,000 suppliers in China. *end quote!

Now! if there be 182 country's making items for the world to buy and they have only 5% of the pie in China...duh! This company makes the nice people of China support their currency(yuan) by keeping it in their country working for the people there.... but with the yuan going up in value and the US dollar going down...all the foreign items that the American consumer buys thinking it is cheap has went up in price.

People...its all about the currency and to keep a currency strong you got to keep it floating around the country you live in so it can work for you. For the past 12 years all them US dollars are being shipped overseas to a foreign bank and with the American worker not making anything for the foreigner to buy the "we the people" have to turn to the "second" largest employer in America(Uncle Sam) to sell "we the people" debt in order to get all them dollars back!

50 years ago a foreigner would had given their left nut for a US dollar or a Hershey's chocolate bar and today the same foreigner has got Uncle Sam and the American consumer by both all the while Hershey is moving the chocolate factory to Mexico. Wake up! America and think "MADE IN AMERICA."

If there is a hidden cost of $9 billion a year to all taxpayers jus to clean fish from the ballast tanks of ships cheap items from a foreign land ain't chic!

Stuckey

March 4, 2009 10:17 AM

So what about help for the people who already lost their homes? They are helping people now, but what about loan forgiveness for the ones who already lost their homes? Does any one know?

Denisia

April 21, 2009 5:19 PM

I am with Stuckey, what about the ones who already have lost their homes? Please help?

Denisia

April 21, 2009 5:19 PM

I am with Stuckey, what about the ones who already have lost their homes? Please help?

Scott Nash

July 9, 2009 5:00 AM

If you're NOT on Page-1 of Google, you're LOSING sales.
50% of sales from the Internet are from position 1-5 on Google.

This is why MOST business owners are re-allocating their Yellow Pages (and direct mail) marketing budget to online.

EVERY one of our Clients have Keywords ranked on Page 1.
We are a leading Los Angeles, CA Internet Marketing firm.
Our Clients are ranked on Page 1 for over 1,000 KEYWORDS.

We're real people, in a real office, with real results.
We guarantee our work in writing. NO Magic. Just Hard work and Real Results.
We have over 350,000 pages indexed on Google.

To find out how long it would take to get your business to Page 1,
CALL 310-594-5233. Ask for Scott/Dave/Mark ...3 guys with #1 results.

We typically ONLY work with one business per Vertical Market in each metropolitan area.
This can be you or it could be your competition.
Whomever it is, will get more sales. That's our guarantee!

Scott Nash

July 18, 2009 2:06 AM


If you're NOT on Page-1 of Google, you're LOSING sales.
50% of sales from the Internet are from position 1-5 on Google.

This is why MOST business owners are re-allocating their Yellow Pages (and direct mail) marketing budget to online.

EVERY one of our Clients have Keywords ranked on Page 1.
We are a leading Los Angeles, CA Internet Marketing firm.
Our Clients are ranked on Page 1 for over 1,000 KEYWORDS.

We're real people, in a real office, with real results.
We guarantee our work in writing. NO Magic. Just Hard work and Real Results.
We have over 350,000 pages indexed on Google.

To find out how long it would take to get your business to Page 1,
CALL Scott Nash @ 310-594-5233 for more info.

We typically ONLY work with one business per Vertical Market in each metropolitan area.
This can be you or it could be your competition.
Whomever it is, will get more sales. That's our guarantee!

sharon

August 13, 2009 6:19 PM

what is the goverment doing for those that have lost their homes ?Why no answers?

Clive

October 27, 2009 12:05 PM

Comments here are astonishing. The problem is dam simple. The Fed is a private bank that makes money out of nothing. Give a printer to someone in your neighborhood and let them print money. How long before they own your home, the politicians, judges, cops and military. For goodness sake up! The Fed is the most destabilizing factor in the worldwide economy.
Go to www.LibertyForLife.com click on "Fed Bank Evil Root?" See what Jefferson warned us about.

steve

March 10, 2010 6:18 PM

I agree with Clive, america has lost scense of it's self.The housing problem is only a tip of the iceberg.
It's nice to think positive, but don't bury your head in the sand. We the people have been & are being scamed.
Slaves to a mometary system that will only make those who control it richer &
more powerful. Smoke & mirrors, turn of the news and use your mind. Ask yourself why at every election do we only have a few people to chose from, & who picked those few, not the people!
Pay attention & take action, future generations are depending on us. Imagine what our lives would be like if the founding fathers just said "oh well" nothing we can do.

really pist

March 18, 2010 4:26 AM

f the fed they aint doing squat if they were they wouldnt be ppl losing there homes. if they were to do somthing they should have cracked down on the banks for giveing out loans that they abiously new wernt no good. they were giveing out loans to ppl that couldnt afford them i think it was planed premaditated ..banks are evil they rather kick the family to the curve instead of helping them ..for them its just buisnes..bull shit this is all bull shit to me man f the banks

Post a comment

 

About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

BW Mall - Sponsored Links

Buy a link now!