A Historical Perspective on Foreclosure Rates: 1,000 per day in 1933 vs. 10,000 per day in 2010


A TSUNAMI OF MORTGAGE FORECLOSURE & EVICTION

A wave of bank foreclosures and evictions has shaken the stability of the people of the United States of America from coast-to-coast in a manner without historical precedent.  While certain urban areas may have suffered higher rates during the great depression of the 1930s, one source reports that the foreclosure rate peaked in 1933 at 1000 homes going into foreclosure every day, nationwide[1].  A separate source reports that in the last quarter of 2010 there were 800,000 foreclosures filed in the Fourth Quarter alone[2].  One not educated in higher mathematics, Boolean algebra or statistics cannot easily calculate or articulate in meaningful terms what the difference between 1000 per day in 1933 and 800,000 per quarter in 2010 would be (although the 2010 figure appears to approach 10,000 per day), but one can fairly say that a disaster of tidal wave proportions grips this country by the throat and every class of society is equally affected except for the very richest of the richest, only perhaps the top half of the top 1% of the population can rest truly safe.


[1] http://homeguides.sfgate.com/historical-rate-mortgage-foreclosures-8868.html:

Depression-Era Information

A 2008 article by David C. Wheelock, an economist at the Federal Reserve Bank of St. Louis, cited annual reports issued by the Federal Home Loan Bank Board during the 1930s. These reports reveal that the foreclosure rate exceeded 1 percent from 1931 until 1935. At the worst point in the Depression-era economic crisis, in 1933, about 1,000 home loans were being placed in foreclosure by banks every day.

(Website quoted as of on-line report available and consulted January 29, 2012).

[2] http://www.housingwire.com/2011/01/12/foreclosures-reach-record-high-in-2010-realtytrac:

Daren Blomquist, who edits the RealtyTrac monthly reports, said the record set in 2010 will not last for long.

“We don’t think we’ve peaked yet nationwide,” Blomquist told HousingWire. “We’re expecting the 2011 numbers to be slightly higher than 2010, and then start the downward trend toward ‘normalcy’ in 2012.”

Saccacio said foreclosure filings would have been higher in 2010 “had it not been for the fourth quarter drop in foreclosure activity — triggered primarily by the continuing controversy surrounding foreclosure documentation and procedures that prompted many major lenders to temporarily halt some foreclosure proceedings.”

The final quarter of 2010 had the lowest total since the fourth quarter of 2008. Lenders filed slightly fewer than 800,000 foreclosure cases in the fourth quarter, down 8% from a year ago and down 14% from the previous period.

In December, filings dropped 26% from a year ago and 2% from the previous month. Lenders ramped up repossessions, REO, for the month by 4%, led by a 71% monthly increase in Nevada to 3,022 repossessions. However, Nevada REO was still down 24% from a year ago.

Overall, Nevada had the highest foreclosure rate for the fourth consecutive year. There, one in 11 homes received a filing in 2010 despite a 5% decrease in activity from 2009. Filings did ramp up 18% in December from the previous month and were up 14% from December 2009.

Arizona followed with the second highest rate. One in 17 homes there received a filing. Florida, one in 18, was third.

But Blomquist warned more foreclosures could be in store even for those markets that many believe are peaking now.

“There are some states and metro areas where it appears the numbers may have technically peaked, areas of California like Stockton are good examples,” Blomquist said, “but foreclosures are still pretty high in most of those areas and there is still risk that we could see some foreclosure aftershocks hitting those markets in 2011.”

(Website quoted as of on-line report available and consulted on January 29, 2012).

John Michele Fanuzzi & Norah Bawn Fanuzzi 01-31-2012 NOTICE OF OPPOSITION TO REMAND AND BRIEF IN SUPPORT OF REMOVAL TO US DISTRICT COURT

8 responses to “A Historical Perspective on Foreclosure Rates: 1,000 per day in 1933 vs. 10,000 per day in 2010

  1. A lot of people are really shaken by the increase in the rate of foreclosure cases.

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