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Saturday, May 10, 2008

UK: Home repossessions to double

by Calculated Risk on 5/10/2008 08:09:00 PM

From The Times: Home repossessions to double this year for mortgage defaulters

The number of people who are losing their homes because they cannot meet rising mortgage bills is set to double this year, experts said yesterday.
The number of repossession orders granted in England and Wales in the first three months of the year climbed to levels not seen since the early 1990s, reaching 27,530.
Experts also urged a sense of perspective, pointing out that the present level of repossessions remains considerably below the peak of 75,540 homes seized during 1991, at the peak of the last recession. About 142,900 repossession orders were made that year.
Hmmm ... 27 thousand foreclosure orders in the first quarter is a 108 thousand annual pace. And the problem seems to be getting worse each quarter. I'm not sure the present level of foreclosure activity is that far below 1991 in the UK.