It is all bad news for the re-election chances of Barack Obama.
So his advisers are pondering a plan to subsidize and guarantee millions of mortgage refinances that the private market won’t underwrite.
This would be typical for the Democrats, subsidizing bad investment decisions (buying more home than one can afford) by taking money from people who did not make such decisions.
The states with the highest rates of foreclosures are must-wing states for the president if he wants to get reelected.
Swing states Florida, Arizona, Nevada, Ohio, and Michigan all pulse red-hot on a foreclosure rate “heat map.” Those five alone account for 80 of the 270 electoral votes needed to win the presidency.
Mortgage-default notices surged nationally last month. One in every 118 homes in Nevada received a foreclosure filing in August, according to the foreclosure listing firm RealtyTrac. The figures were one in 248 in Arizona, one in 349 in Michigan, and one in 376 in Florida. And so on.
The impact of foreclosures is visceral and outsized, rippling far beyond one household.