Fed Up: The Foreclosure Crisis that Caused the 2008 Crash Is Now Ending

Below is another “fake news” report from your friendly St. Louis Federal Reserve.  The Foreclosure Crisis isn’t even close to being resolved.  Pensions are failing, houses are being foreclosed with fake documents and housing prices have reached unaffordable levels while wages remain flat.  This isn’t even close to being the end of the crisis.  Until the real issues are resolved America cannot recover.


Fed Reserve PDF

The St. Louis Federal Reserve Bank study, “The End Is in Sight for the U.S. Foreclosure Crisis” states:

The Foreclosure Crisis at a National Level

Mortgage Bankers Association data show that the U.S. foreclosure crisis started in the fourth quarter of 2007, when the combined rate reached 2.81 percent, a level that exceeded its five-year moving average by 0.67 percentage points, more than any other previous level. Given that the combined rate stood at 3.2 percent in the third quarter of 2016, this suggests that the nationwide foreclosure crisis has not yet quite ended. However, based on the rate of decline in recent quarters, the data-defined end of the crisis on a national scale is likely to occur as soon as the first quarter of 2017. (See Table 1.) Indeed, comparable data from Lender Processing Services, as shown in the recently released Housing Market Conditions report from the St. Louis Fed, also suggest the foreclosure crisis is nearing its end.

The Foreclosure Crisis in the St. Louis Fed’s Eighth District 
Figure 1 displays the share of mortgages that are seriously delinquent or in foreclosure in all seven Eighth District states for the period 1980 through 2016. To determine the duration of state-level foreclosure crises, we examine two thresholds: a nationwide benchmark and a threshold unique to each state.3
Table 1 provides beginning and ending dates for the foreclosure crisis nationwide and for Eighth District states using the nationwide benchmark. 
That study, by William Emmons, was dated December 2016, and it predicted that the trendline nationally was that the “end of the crisis on a national scale is likely to occur as soon as the first quarter of 2017. (See Table 1.)”; so, one can reasonably assume that the end of the cause of the ‘recession’ of 2008-2009, is finally being reached, just about now.
However, unfortunately, after mortgage-debt having soared to unprecedented heights right before the 2008 crash, it has remained overall (irrespective of foreclosures) rather stable at or near that peak, and has been slightly rising again since 2013:

8 Responses

  1. Hi SoCal,

    Thanks for the advice….supposed to go to bk court 3/10. Just got notice that mortgage pmnt reduced to a 1/3. WHO KNOWS what that means!!?!! Just hired attorney day before that for violations of CA. Homeowner Bill of Rights………need to talk with him about all of this. Best Wishes to YOU, So-Cal…………and thanks for the info!!! 🙂

  2. @Tara & @ Steve: It is damn near impossible to get to discovery (crucial!!) in the current California Superior Court climate…and good luck at the appellate level….they just don’t want to hear it.

    Suggestion: File Ch 13 BK…convert to CH 11 (saves money and changes the rules), then file an objection to claim as to the Imposter Bank. At the initial Objection hearing, ask the judge to invoke adversary rules (FRBP 7036…I think), and then WHAMMO! you are in full-on discovery. Depose, propound and DEMAND replies to requests for admissions, docs, etc.

    Get them on the run….I agree there is an absolute dearth of able or willing attys to take on the Banks frontally, but going this route gives you many advantages…in CH 11.

    Find a good BK Atty…they smell bullshit debt better than anyone. Or do it yourself, if you can.

    God bless.


  3. Please write to your State senators to change laws on illegal foreclosure. Banking lobby may be getting stronger these days. A lot of things are fake these days and I heard this may even include food ! Here’s link to start reading about fake food by the greedy people: http://www.delish.com/food-news/news/a48194/real-foods-fake-foods/

    What do we do to stop this greed and fraud?

  4. @ Tara,

    A modification is all you can hope for at best. You don’t need a lawyer or worst get stuck with one who will charge you upfront fees and do nothing. There was a one year statue and a three year statue on fraud ( I can’t recall) that I argued about between the District Attorney and Department of Real Estate from a loan originated at the end of 2006 during 2008. Both of them did nothing but make up excuses to do NOTHING. Yes in California from experience you will be ignored.

  5. I have TONS of fraud on my 2005 Countrywide Loan Documents, and I CANNOT find an attorney here in Southern California that will touch it!! There are TONS of attorneys that will “modify” the loan.,..but NONE will sue the lender …ah, servicer for an illegal foreclosure. All they want to do is sue for the California Bill of Rights violations – to negotiate a better loan modification!!! They say the “Statute of Limitations is over, and you CANNOT get a judge to do anything with the fraud, but dismiss it as a “frivilous” lawsuit…and it will get thrown out. I thought in contract law that FRAUD was FRAUD, and always will be FRAUD…and I thought that FRAUD VOIDED the contract….


  6. It is not over. And, settlements are not being adhered to. But, then again, what consumer relief was really provided to consumers under the settlements? Not over.

  7. Debt means people don’t really own anything. It looks like we own even less acccording to the color graph

  8. Nothing like fake news!!! Let’s hope the new administraton will do the right thing. I worte correspondence to the Whie House and Obama for three (3) years and never got as much as a reply. Our own government is right in the middle of all the past racketeering and I don’t think the crooked lawyers and FHAF, GSE, Fannie and Freddie will allow the 10th Circuit Court Ruling to advance through the courts. They always seem to have something up their sleve as they say. Really sad!!! Now we have Menunchin who was allegedly a big part of all of this!!!! Semper Fi!!!

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