"We have to find a solution where government intervention prevents a disorderly outcome" in the housing market that leads to a "systemic banking crisis," says Nouriel Roubini, NYU professor...
The housing bill, which earmarks $300 billion to backstop mortgages after lenders agree to lower mortgage payments, is "a step in the right direction" but "doesn't do enough," he says, predicting the government will ultimately need to spend more than $1 trillion.
Homes facing foreclosure more than doubled in Q1 from 2007. The number of US homes facing foreclosure jumps 112 percent in first quarter from 2007. Nationwide 649,917 homeowners received a foreclosure filing in the first quarter from 306,722 during the same period last year.
Economists project 2.5 million homes nationwide will enter the foreclosure process this year, up from about 1.5 million in 2007. In May one in every 483 U.S. households received a foreclosure filing notice. This is the highest rate since Realty Trac began issuing their report.
Nevada posted the highest state foreclosure rate with one in every 118 households receiving a foreclosure notice. California was second on the list with one in every 183 households receiving a foreclosure notice. Arizona ranked third on the list with one in every 201 households receiving a foreclosure notice. One in every 228 Florida households received a foreclosure filing in May ranking in fourth.
