Road to Depression

Amerikans brace for next foreclosure wave!

on . Posted in Road to Depression

GARFIELD HEIGHTS, Ohio (PNN) - April 4, 2012 - Half a decade into the deepest Fascist Police States of Amerika (FPSA) housing crisis since the 1930s, many Amerikans are hoping the crisis is finally nearing its end. House sales are picking up across most of the country, the plunge in prices is slowing and attempts by lenders to claim back properties from struggling borrowers dropped by more than a third in 2011, hitting a four-year low.

But a painful part two of the slump looks set to unfold: Many more FPSA homeowners face the prospect of losing their homes this year as banks pick up the pace of foreclosures.

"We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010," said Mark Seifert, executive director of Empowering & Strengthening Ohio's People, a counseling group with 10 offices in Ohio.

"Last year was an anomaly, and not in a good way," said Seifert.

In 2011, the "robo-signing" scandal, in which foreclosure documents were signed without properly reviewing individual cases, prompted banks to hold back on new foreclosures pending a settlement.

Five major banks eventually struck an unlawful settlement with 49 FPSA states in February. Signs indicate the pace of foreclosures is picking up again; something housing experts predict will further weigh on home prices in the ongoing Depression.

Mortgage servicing provider Lender Processing Services reported in early March that FPSA foreclosure starts jumped 28% in January.

More conclusive national data is not yet available. But watchdog group 4closurefraud.org, which helped uncover the robo-signing scandal, says it has turned up evidence of a large rise in new foreclosures between March 1 and 24 by three big banks in Palm Beach County in Florida, one of the states hit hardest by the housing crash.

Although foreclosure starts were 50% or lower than for the same period in 2010, those begun by Deutsche Bank were up 47% from 2011. Those of Wells Fargo's rose 68% and Bank of America's, including BAC Home Loans Servicing, jumped nearly seven-fold - 251 starts versus 37 in the same period in 2011. Bank of America said it does not comment on data provided by other sources. Wells Fargo and Deutsche Bank did not comment.

Housing experts say localized warning signs of a new wave of foreclosure are likely to be replicated across much of the FPSA.

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