In response to:

Over Half of Foreclosures Now ‘Repeats’

loadstar Wrote: Oct 22, 2012 8:44 AM
the failed theory of mortgages for everyone... The Left had DEMANDED that lenders make sub-prime loans to those undeserving of the credit; that created the housing bubble which also allowed the MBS/Wall St. crisis. The simple truth is that a fair number of people cannot handle a mortgage because they cannot pay (lack of capacity) and/or will not pay (bad credit habits). The THEORY had been that home ownership would move the dependent class into the middle class...it was a dumb theory from the getgo at EGREGIOUS expense to all when it backfired badly, and almost sent us into another depression. It wiped out much of retirement nest eggs. Now the ObaMessiah's people are AGAIN pushing CRA lending-- that is like giving addicts more drugs.

A fundamental question with both the Bush and Obama approaches to the mortgage foreclosure crisis is to what extent are policies simply putting off the inevitable?  Are “permanent” solutions being offered, or are we just recycling the same borrowers through one foreclosure after another?  Recent data from Lender Processing Services (LPS) sheds some light on the question.

The most recent LPS data, covering to the end of August 2012, shows that for the first time, over half of foreclosures are for borrowers that were previously in foreclosure.  Now there are several ways to read the chart below.  On...