Housing Repossessions

It was recently reported in Yahoo News that foreclosures are still on the increase, in the USA.

This is a worrying trend because although housing repossessions in the UK, are nothing like as high as they are in the US, it seems that there is a severe knock on effect.

Economy - Thursday - Yahoo! News

Economy - Thursday - Yahoo! News: "U.S. home foreclosures spike

"Foreclosure filings jumped 55% in July vs. last year to 272,171 homes, just shy of May's record 273,001, RealtyTrac said. That's one per 464 households and signals that the nation's housing woes are deepening. Meanwhile, bank seizures of property almost tripled from last year to 77,295 in the biggest gain since records began in '05. Nev., Calif. and Fla. were hit hard.

Median single-family home prices in metro areas fell 7.6% in Q2 vs. a year before to $206,500, as rising foreclosures drove down values, the Nat'l Assoc. of Realtors said. Discount window loans to banks from the Fed averaged $17.7 bil in the week ended Aug. 13, breaking the prior week's record of $17.37 bil. Brokerages borrowed nothing. ECB official: economy healthy"

There has been much publicity, that Banks and other mortgage sources both sides of the Atlantic, have very much been caught out by the downturn in the property market. It had become customary to strengthen liquidity and potential profits by swap arrangements. As more people in the US are unable to meet their obligations, it is possible that those UK banks most involved in such arrangements, could sustain further losses.

There's no gain without pain, is something that may apply particularly to buy to let investors, as banks struggle to protect their own interests, through a tightening of lending policies.

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