When the housing bubble popped, millions of homes went into foreclosure. Millions of Americans lost their homes, valuations crumbled, and the economic went into a tailspin. It was a scary time for many families.
Are we on the brink of another fiscal disaster?
According to the July 2018 U.S. Foreclosure Market Report released by ATTOM Data Solutions, foreclosures are on the rise compared to the same time a year ago.
The report found that foreclosure starts in July advanced one percent from July 2017, which is the first year-over-year increase after 36 straight months of declines. In total, 30,187 U.S. properties began the foreclosure process.
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21 states posted a year-over-year increase in foreclosure starts in July, including Florida (up 35 percent); California (up 3 percent); Texas (up 7 percent); Illinois (up 7 percent); and Ohio (up 2 percent).
Metro areas posting year-over-year increases in foreclosure starts in July included Los Angeles, California (up 20 percent); Houston, Texas (up 76 percent); Philadelphia, Pennsylvania (up 10 percent); Miami, Florida (up 29 percent); and San Francisco, California (up 10 percent).
“The increase in foreclosure starts is not just a one-month anomaly in many local markets given that July represented the third consecutive month with a year-over-year increase in 33 metro areas, including Los Angeles, Miami, Houston, Detroit, San Diego and Austin,” said Daren Blomquist, senior vice president with ATTOM Data Solutions.
“Gradually loosening lending standards over the past few years have introduced a modicum of risk back into the housing market, and that additional risk is resulting in rising foreclosure starts in a diverse set of markets across the country. Most susceptible to rising foreclosure starts are affordability-challenged markets where homebuyers are more financially stretched and markets with some type of trigger event such as a natural disaster or large-scale layoffs.”
We are in the middle of Housing Bubble 2.0, in addition to the bubbles in student loans, auto loans, credit cards, and every debt-induced market.
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