Fox Business
Expand
Browse All Video
Watch Live

You're watching...

2012: The Year of the Foreclosure?

Details

  • Description

    FBN's Adam Shapiro breaks down the possible 2012 foreclosure fiasco.

  • Duration 3:35
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Right thanks a lot.

A fuel the economy always in focus as investors make their investment decisions of course so.

It's good news bad news on the housing front a good first foreclosures have dropped the lowest level since 2007.

But the other side of the coin is foreclosures fell because of the robo signing scandal and controversy and all of those paperwork issues.

So if these issues are resolved this year what does it mean for housing outage appears here with the details would see where you.

The end is -- run for the hill knows there is -- it isn't -- have a lot of foreclosures ramp back up especially because you mentioned the robo signing scandal.

Department of Justice is negotiating with the five major banks they want to add even other banks into it.

This twenty to 25 billion dollars settlement could be announced in the next week or two.

If that happens the floodgates opened again and all of the foreclosures we saw slowdown in 2011.

Pick back up into 2012 let's say some of the -- numbers what we're talking about here.

In 2011 total filings the number of properties that had some sort of foreclosure filing leveled against them according to realty track 1887000.

777.

That's down 34% from 2010 down 33% from 2009.

Why.

-- -- -- -- controversy over the fraudulent foreclosure documents a robo signing.

The banks actually agreed -- at one point they took a moratorium.

Not only to slow down but they stopped the process that's one reason this is happening.

Now take a look at another thing that's going on days to -- in 2011.

It took roughly a year to foreclose on a house that was a number of days for an institution 348.

But in places like Florida one of the top five states for foreclosure more than 800 days New York State they can take over a thousand days actually in New York State in the New Jersey.

Over 800 days to foreclose on a property that is expected to start picking up.

Once the settlement is announced between the states attorneys general member was Michigan that brought the pursuit and -- -- joined together.

And the major banks that are negotiating now with the Department of Justice bottom line.

Everybody who got to later slowed down back in 2011.

Hits the press at 2012.

And -- summit out this quote from realty track CEO granted more.

Foreclosures were in full delay mode in 2011 resulting in a dramatic drop in foreclosure activity for the year.

What we'd like to see is a drop in foreclosure activity because people were cleaning these properties out and able to get back on their feet but.

Every no fewer foreclosures I mean this was the argument at the time was had some people sat on one side this is just gonna delay the inevitable it's just going to slowdown the clearing process -- others have -- this would -- It's gonna -- people keep them in their homes.

It's not gonna keep them in -- -- eventually you have that big clearing process and that's what you're saying but the other issue that's going on right now -- you wanna keep an online.

On not only the foreclosure numbers you know but the days the days it takes for the banks to actually clear these homes.

Through the process because -- -- get all of this inventory out everyone suffers because of pulls down the value government's proper.

That's to be question because we're hearing a lot more people invest in homes.

We're seeing a lot of the big banks recommend the homebuilders and there's a top with inflation coming -- that fixed assets are really the best in that.

As selling at discounts of 35 and 40% -- -- -- -- kind of -- brightest don't market clearing even if it's a huge discount Eric Rosen -- years ago when we first is saw the collapse start in the housing process the Federal Reserve Bank president up in Boston said.

Let this collapse take place clear these properties quickly to avoid what we've seen in other parts of the world Japan IE.

We didn't do it.

We're still not there and he still says you got a clear these properties out whose prices are starting to stabilize little thing thank -- at thirty to 40% audience historic levels now take the.

Load More