3 Million Homeowners Hit With Foreclosure in 2009

January 20, 2010

CNN Money

By Les Christie

Almost 3 million homeowners received at least one foreclosure filing during 2009, setting a new record for the number of people falling behind on their mortgage payments.

RealtyTrac, the online marketer of foreclosed homes, reported that one in 45 households — or 2,824,674 properties nationwide — were in default last year. That’s 21% more than in 2008, and more than double 2007’s total.

The dramatic, sustained increase occurred despite efforts, such as President Obama’s Home Affordable Modification Program, to reduce foreclosure filings.

“As bad as the 2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans,” said RealtyTrac CEO James Saccacio in a prepared statement.

There was at least one bright spot in the report: In spite of a 21% increase in filings, the number of homes actually repossessed was 871,086 — up just 1.1% above 2008’s total.
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“That was driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline,” said Saccacio.

Filings peaked in July with more than 361,000 homes receiving notices. After that, filings dropped four straight months.

Much of that is attributable to the government-led efforts to modify loans to make them affordable, though it is still uncertain whether the efforts have forestalled — or just delayed — foreclosure.

By early December more than 680,000 borrowers had gotten temporary workouts but only a few thousand had been permanently modified.

That leaves Saccacio a bit pessimistic about the future. “In the long term, a massive supply of delinquent loans continues to loom over the housing market,” said Saccacio. “And many of those delinquencies will end up in the foreclosure process in 2010.”

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Jail Time for Those without Health Care Insurance

November 11, 2009

ABCNews

By Sunien Miller

During an exclusive interview with ABC News’ Jake Tapper today, President Obama said that penalties are appropriate for people who try to “free ride” the health care system but stopped short of endorsing the threat of jail time for those who refuse to pay a fine for not having insurance.

“What I think is appropriate is that in the same way that everybody has to get auto insurance and if you don’t, you’re subject to some penalty, that in this situation, if you have the ability to buy insurance, it’s affordable and you choose not to do so, forcing you and me and everybody else to subsidize you, you know, there’s a thousand dollar hidden tax that families all across America are — are burdened by because of the fact that people don’t have health insurance, you know, there’s nothing wrong with a penalty.”
Under the House bill those who can afford to buy insurance and don’t’ pay a fine. If the refuse to pay that fine there’s a threat – as with a lot of tax fines – of jail time. The Senate removed that provision in the Senate Finance Committee.

Mr. Obama said penalties have to be high enough for people to not game the system, but it’s also important to not be “so punitive” that people who are having a hard time find themselves suddenly worse off, thus why hardship exemptions have been built in the legislation.

“I think the general broad principle is simply that people who are paying for their health insurance aren’t subsidizing folks who simply choose not to until they get sick and then suddenly they expect free health insurance.  That’s — that’s basic concept of responsibility that I think most Americans abide by,” Mr. Obama said, “penalties are appropriate for people who try to free ride the system and force others to pay for their health insurance.”

The President said that he didn’t think the question over the appropriateness of possible jail time is the “biggest question” the House and Senate are facing right now.

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