What was the number of foreclosures during 2010

Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. The foreclosure crisis was a period of drastically elevated property seizures in the U.

The foreclosure crisis was one aspect of the financial crisis and Great Recession that developed during this period. The excessive extension of mortgage credit, complicated schemes of mortgage debt securitization, and rapid increase in the number of foreclosures in an industry ill-prepared to process them all each contributed to the crisis. Foreclosure is the legal process that occurs when a homeowner fails to make full principal and interest payments on his or her mortgage.

If this issue is not rectified within a specified grace period , the lender has the right to evict the homeowner, take control of the property, and then sell it off. The foreclosure crisis peaked in Sept. However, its roots lay in a downturn in the housing market that began early in and blossomed into a crisis when Lehman Brothers declared bankruptcy in Sept. Excessively low interest rates due to expansionary monetary policy at the U.

Federal Reserve, coupled with pro-housing policy by the executive branch, in the s created a boom in home buying and the extension of credit for home mortgages. This led to generally sketchy or nonexistent oversight of underwriting processes as commission -hungry lenders recklessly dished out hordes of riskier subprime mortgages on sometimes predatory terms to people with low income and creditworthiness.

This process was facilitated by the innovation of mortgage debt securitization that allowed lenders to pass the risks of these loans on to investors and continue lending. The volume of mortgage debt relative to the economy's ability to repay rose rapidly.

Total mortgage debt in the U. Mortgage banks frequently pocketed fees and then promptly sold the loans on to often inattentive financial institutions , which failed to do appropriate due diligence on the loans.

The mortgages were securitized into Mortgage-Backed Securities and more complex instruments, which were believed at the time to be an adequate tool to manage the default risk of any one mortgage by combining it with other loans to effectively pool the risk and then distribute it across all holders of the issued security.

In addition to not ultimately being an adequate risk management tool particularly when virtually all home prices fell and defaults became widespread the securitization of the loans in many cases obscured the links between who held the loans and the borrowers. As the Federal Reserve began to hit the monetary brakes and slow down the massive flow of credit expansion in , problems started to become visible in the industry.

Tighter credit conditions made it harder for lenders to continue to extend risky mortgages and made existing mortgages with adjustable interest rates less affordable for existing borrowers. PNG format. PDF format. Show details about this statistic. Exclusive Premium functionality.

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Exclusive Corporate feature. Corporate Account. Statista Accounts: Access All Statistics. Basic Account. The ideal entry-level account for individual users. Corporate solution including all features. Statistics on " Mortgage industry of the United States " The most important statistics. The most important statistics. Further related statistics. Number of properties with foreclosure filings U.

Further Content: You might find this interesting as well. Statistics Number of properties with foreclosure filings U. Topics Mortgage industry in the U. Housing Market Millennial homeownership in the U. Rental market in the U. Residential real estate in Europe. Learn more about how Statista can support your business. January 14, Foreclosure rate in the United States from to [Graph].

In Statista. Saccacio , chief executive officer of RealtyTrac. According to RealtyTrac executives, there would have easily been another , foreclosures in November and December without lenders slowing things down. Saccacio said 1 million homes were foreclosed on in , and he expect the foreclosure numbers to be even worse in , in part due to to delays in foreclosure filings and lender confusion over the documentation needed to initiate and complete foreclosures.

As we start this year, look out for an spike in initial foreclosure filings, as lenders try to catch up on the foreclosure filing backlog. But with today's unemployment report spiking north again , it's clear that foreclosures will be trending up as well.

Ilyce R.