Today's Columbus Dispatch (online) reports that Ohio is struggling with an accelerating rate of home foreclosures.
"The number of households facing the foreclosure process more than doubled in the second quarter compared to a year ago, according to data released today. Nationwide, 739,714 homes received at least one foreclosure-related notice during the quarter, or one in every 171 U.S. households, Irvine, Calif.-based RealtyTrac Inc. said."
RealtyTrac looks at default notices, auction sale notices and bank repossessions.
"Ohio ranked sixth on the list, with one foreclosure for every 134 households... Toledo had the worst rate in Ohio, ranking it 21st among major markets nationally, with one foreclosure for every 92 households. The Cleveland area ranked 26th, and Dayton came in 29th. Columbus ranked 31st with one foreclosure for every 122 households. The Cincinnati market ranked 41st on the list."
Particularly significant:
"Bank repossessions accounted for 30 percent of total foreclosure activity, up from 24 percent in the previous quarter. Economists estimated 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007."
In other words, people are losing their homes because they cannot pay back loans which were funded with money that came out of thin air (see my Federal Reserve Bank label) and for which the banks assumed only minimal, if any, real risk. I agree that people should pay their debts, but there has to be a happy medium between bank profits, homeowner security, and contracts that people can understand. Government that acts in the public interest would work to find it. If you think this Administration will do so, I'll be happy to sell you my home for twice its market value.
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