Even More Millionaires Defaulting on Mortgages

The RealtyTrac organization predicted earlier this month that home foreclosures in 2011 will likely exceed the record 3.8 million reported in 2010.

CBS News correspondent John Blackstone reports one group of mortgage defaulters seems to be bucking the trend. In wealthy communities like La Jolla, Calif., living near the ocean is a privilege that many homeowners are willing to pay millions for.

For Darren Thomas that ocean view was quickly losing its value. He says, "I bought it for [$1.385 million]. It is worth less than [$800,000], maybe less."

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Foreclosures.com Founder Faces Auction of Fair Oaks House

Alexis McGee, founder of Foreclosures.com, made a national reputation by helping investors find and buy distressed properties whose owners were struggling to stave off foreclosure.

Now those investors might have an unlikely prize in a large new Craftsman-style home in Fair Oaks that's scheduled for sale on the courthouse steps early next month.

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Bank of America Foreclosures in Utah Could be Halted Again

Plaintiff Peni Cox who has challenged Bank of America’s Utah foreclosure practices has taken another step closer to being heard in the 10th Circuit Court. Attorneys for Cox, John Christian Barlow and E. Craig Smay have filed a motion to stay the court order issued by federal Judge Clark Waddoups June 11, 2010. The decision has allowed ReconTrust Company to continue its unabated non-judicial foreclosure activity in Utah. The judge denied Cox's request for a Temporary Restraining Order (TRO) July 7, 2010 saying he was not persuaded by the Plaintiff’s arguments.

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Fannie and Freddie Foreclosures Increasing at Fastest Rate Yet

Another day, more foreclosure news, more bad news at Fannie and Freddie, ho-hum…

From a story today at Housing Wire by Jacob Gaffney, we learn that the number of homes with mortgages owned by government sponsored entities (GSEs) Fannie Mae and Freddie Mac entering foreclosure is at an all-time high, and is still increasing.

Thus far, 1.46m homes have entered foreclosure in 2010. In the same amount of time in 2009, we had 1.68m foreclosures, and 1.25m in 2008. According to a study by Lender Processing Services cited by the article, the rate foreclosure starts are increasing by is the fastest pace yet.

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As FHA Mortgage Volume Increases From 2009, Serious Delinquencies Spike

The rate of seriously delinquent mortgages backed by the Federal Housing Administration (FHA) declined slightly from May to June, but the gross number of mortgages that are either 90 or more days past due or in foreclosure increased 35% year-over-year.

According to the FHA June single-family operations report, the total volume of mortgage in-force increased more than 24% to 6.4m in June compared to the same month one year ago. The total value of unpaid FHA mortgages was $865.5bn in June, up 30.3% from $663.8bn one year ago and up 3.3% from $837.8bn in May.

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Biggest Defaulters on Mortgages Are the Rich

No need for tears, but the well-off are losing their master suites and saying goodbye to their wine cellars.

The housing bust that began among the working class in remote subdivisions and quickly progressed to the suburban middle class is striking the upper class in privileged enclaves like this one in Silicon Valley.

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

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