Bank of America Stability Threatened By Rising Foreclosures

The foreclosure rate has taken a dramatic tick upwards.

This puts downward pressure on home prices which in turn causes more foreclosures.

Flooded by foreclosed properties, which cost banks on average more than $40,000 each, banks have taken their time in putting such properties on the market, not wanting to flood the already weak market and drive prices down further.

I bank at Bank of America. They don’t want poor customers like me. I get charged $14 a month in account fees if my checking account balance ever falls below $1500.

Bloomberg reports

Analysts have predicted banks will face more claims if home prices continue to decline and foreclosures keep rising. Default notices sent to overdue U.S. homeowners surged 33 percent in August from the previous month, and total foreclosure filings increased 7 percent, according to a Sept. 15 report from RealtyTrac Inc., the Irvine, California-based data seller. The increase in default notices was the biggest monthly gain in four years.

Collectively, that leaves investors with little certainty on how big the tally may become, according to Barofsky, the former TARP official and now a senior fellow and adjunct professor at the New York University School of Law.

“I don’t think anyone knows where the bottom is for all these costs,” he said.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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