U.S. home foreclosure filings hit 252,000 in June, a 53 percent year-over-year increase but a 3 percent drop from May, RealtyTrac reported. Bank repossessions jumped 171 percent over last June, and are outpacing filings. An estimated 53 percent of subprime borrowers will have negative equity in their house by late 2008, and that will rise to 63 percent in 2009. “Lenders are much less willing to work with you if you’ve got negative equity, and you’re more likely to give up your house if you’re deeply underwater,” said Moody’s Economy.com chief economist Mark Zandi. (Bloomberg)
The bottom line
July 10, 2008
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