Research shows that 50 percent of middle class homeowners are in fear of losing their properties in 2009 as they continue to struggle to pay their mortgage payments according to reports in the Daily Telegraph.

The Council of Mortgage Lenders predicts that the number of repossessions will hit 75,000 next year nearly double of this year.

According to a YouGov poll 44 percent of homeowners are worried that they will get repossessed in 2009. With a similar number of people worried that they won’t meet their mortgage payments between now and then ends of 2010.

The New Homeless study found that the fear of repossession runs across all classes with 42 percent of middle class professionals worried about next year’s mortgage payments compared to 46 percent of blue collar households.

Source: Telegraph

According to RealtyTrac the number of foreclosures in America has risen 21 percent in September from the same time last year, although the figure fell by double digits from the previous month in some states as the slowed down the foreclosure process. RealtyTrac the company who did the report are a research firm who provide monthly reports on the different stages of foreclosures in the US property market.

Bank repossessions, auction sale notices and default notices fell to 265,968 in September that’s a drop of 12 percent from August. This counts for a one in every 475 US household in September receiving a foreclosure filing according to the RealtyTrac report, which is still extremely alarming.

It was reported that the decrease of 12 percent was mainly due to some states changing their laws to help homeowners who had trouble with their mortgage repayments by slowing down the process.
The report showed that California saw a decrease of 51 percent of foreclosure filings in September from the previous month and that was due to the a new law in California law stating that lenders are require to contact the borrower at least 30 days before filing a Notice of Default (NOD).

California wasn’t the only place to be helped by a new law; in North Caroline a new law slowed the rate of default notices by 66 percent. Although this is not expected to last, as the laws changing over was the reason the foreclosures slowed.

Source: cnbc

Mortgage lenders in Britain will have to abide by new laws according to the Prime Minister, under the new rules the lenders will have to prove that home repossession is only used as a last resort.

The new rules to be introduced are to stop lenders rushing in to repossess homes to allow them to get a better price for the property when homeowners are unable to meet their monthly mortgage payments.

As unemployment and mortgage rates continue to rise, repossession are expected to increase further, already this year it’s thought that repossession have risen 50 percent and about 45,000 homes have been repossessed.

Northern Rock came under fire recently being accused of being “inflexible” with borrower who fell into arrears and repossessing homes to fast according to debt charity Credit Action.

Under the new law, lenders will be pushed to allow borrowers to take repayment holidays of up to three months. Or they lenders are to be encouraged to change the monthly payment plan by either switching to interest only or extending the mortgage term.

Source: timesonline

Northern Rock has been branded the most aggressive and ruthless bank in repossessing properties, with figures out showing that the nationalised bank is taking back 32 homes a week. In the three months to the end of September this year Northern Rock repossessed 4,201 home, this figure being far higher than most other mortgage companies and a 20 percent rise on the previous quarter.

Shocking figures out show that one home in thirty-six being repossessed by Northern Rock according to the Council of Mortgage lenders.

There were 18.900 homes repossessed in the first half of 2008, which compared to the 40,000 homes repossessed in the early 1990s in a six month period seems fairly moderate. However, experts warn that we will see the full extent of the credit crunch and how it has affected the amount of homes being repossessed. Adding that it can take several months after a homeowner falls into problems paying the monthly mortgage payments before a mortgage company finally takes the home back.

Source: Telegraph

If you think that the credit crunch only hits the lower-paid and the sub-prime, then the news of a £11.6 million home being repossessed in London’s swanky Holland Park will show how it is also affecting the mega-rich.

The property on Ilchester Place, Holland Park was owned by Robert Bonnier, 38, who’s success with Scoot.com shot him to the top, Scoot.com was valued at £3 billion and at one time his stake in the company was worth £130 million before the company folded, although the demise of Scoot.com was sped up by an alleged dirty-tricks campaign. The property has been put on the market for £10 million.
It has been said that this could be the first in a long line of high-end repossessions.

A Mayfair-based estate reported that there were five potential repossessions in Mayfair this year, which is unheard of.

There were 39,078 claims for repossessions from mortgage lenders from June to August this year; this figure was up 17 percent on the same period last year. Not all repossessions result in the borrower losing their homes and not all repossession claims are successful.

Read the full story in the timesonline

Official figures out today show in England and Wales that homeowners threatened by repossession rose by a quarter in the year to the end of June.

According to The Ministry of Justice lenders made 28,658 possession orders against borrowers in the second quarter of the year, 24% more than the same time last year.

The numbers show there is an increase in homeowners struggling to pay their bills, 4% higher than the previous quarter.

The possession claim has now reached 39,078 these are claims made before it goes to court.
This is a huge jump to 17% up from the second quarter last year, but has run at the same rate as the first three months of this year, according to the Ministry.

It’s looking likely the repossession claims are going to be higher this year, last year there were 137,591 which was a 15 year high.

These figures do not reflect the number of homes actually repossessed by lenders but shows how many court actions have been started against homeowners.

If you do think you are going to run into financial problems and not be able to keep up your repayments, you should tell your mortgage lender immediately, as they will try and help you as much as they can.

Source: Guardian

A staggering 18,900 homeowners lost their homes in the first six months of 2008, the highest number for 12 years.

With almost a 50 percent increase compared to this time last year. 12,800 homes were repossessed in the first half of 2007 and 13,400 in the second half of the same year, according to Figures released by the Council of Mortgage Lenders (CML).

CML blame the lack of affordable mortgages sending some homeowners into having their homes repossessed, as some borrowers would normally have remortgaged to help manage their payments as the credit crunch took its toll, but could not afford to do so with the souring lenders fees and interest rates.

According to CML, 155,600 borrowers are in arrears of three months or more at the end of the first half of the year, so an increase on the 129,600 at the end of 2007, and 12,800 at the end of the first half of last year

The CML have forecast a total of 45,000 total possessions and 170,000 mortgages in arrears of more than three months by the end of the year. Considering there are 11.74 million mortgages in the UK, the figure could be worse, although no-one wants to lose their home; there is generally a loss for the lender to.

The number of repossessions is souring up, and the people are becoming increasingly worried about losing their jobs, there is no doubt that we could be heading for a repossess.

Charities are calling on the government to step in urgently to guard against thousands of families losing their homes, and provide financial support to keep them from losing their homes and ending up on the streets.

Financial Experts have advised borrowers to contact their lender if they are facing financial problems and they should discuss their options.

Experts advised borrowers who may be heading towards financial problems to contact their lender to discuss their options.

Source: Telegraph

Read more about the UK housing market here.

Year on year foreclosures have jumped up by 50 percent, this is something that the Federal Government has to try and get under control. The Canadian Government are now facing a bit of a crisis after they introduced mortgages that will take 40 years to pay off.

These mortgages did not want any down payment; so many people who were already struggling for money were able to take out a home loan. Now this has come back to bite people in the rear, as most people have less money to spare, and the first thing that people fall behind on are their mortgage payments.

The reason that the Canadian Government allowed this relaxation was to make home-ownership more widely available for Canadians. Canadians seemed to be loving the new 40-year mortgages, this has started to worry the federal Finance Minister Jim Flaherty.

Read the full report from the Montreal Gazette

Cable’s announcement follows the British Bankers Association (BBA) announcement, they have stated that mortgage approvals had fallen to an all-time low; the Lib Dems has added that repossessions are likely to increase dramatically in the near future. Cable has made claims that these BBA figures suggest that the housing market in the UK is in a severe slump, he also expects further falls.

Cable has also said that the banking industry is to blame for the current bubble in house prices, he said “I wish the BBA, which is now facing up to reality, had been equally clear-headed several years ago when it was already becoming clear that reckless, indiscriminate lending was feeding an unsustainable boom in house prices. This was bound to come to a sticky end.”

The Liberal Democrats are now calling on BBA to work towards developing mechanisms so that they can cushion the effects of the current house price crash and to help those suffering negative equity and those at risk of repossession.

Not so long ago, families knew that if they had their home reposed they would be moved into social housing, but the news that there is a six-year wait before they are permanently re-housed will come as a shock to them. Local Government Association chairman, Sir Simon Milton has said “by 2010 around five million people would be on social housing waiting lists.”

This is a combination of a number of factors, the first is falling house prices, in turn this has an affect on the mortgage market so restrictions has to be put in place. As the economic downturn worsens, the lack of affordable housing will then continue to push up the number of families onto the ever growing social housing waiting lists. Milton added “With the repossessions, the end of small deposit mortgages and the millions of people already on social housing lists, it will mean that those trying to get a home they could call their own from the council could wait more than six years for a two-bedroom house.”

Sir Simon, made a speech at the Chartered Institute of Housing, he said that the unprecedented pressure on social housing had been caused by strong house price gains in recent years. It is not just people who have mortgages facing problems; first-time buyers are also having troubles, because getting a mortgage is now much harder than it was just a year ago.

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