Power Breakfast: Homeowners fight longer to keep houses, HOPE, gas prices, immigration, Girl Scouts, Toyota, GM

Georgia remains one of the top states in the nation for foreclosures, but new data from Atlanta-based Equifax suggest distressed homeowners in the state are fighting longer to keep their houses, AJC writer Scott Trubey reports.

The data also suggest that so-called strategic defaults — when borrowers simply walk away — are likely less common nationally and in Georgia than previously thought, Trubey writes.

The study compared whether borrowers defaulted first on their home loans or things such as credit cards. It also measured the length of time between a default on a credit card and a first foreclosure notice.

The longer the time, known as default distance, the more likely the borrower was diverting resources to stay in their home, Trubey explains.

As of September 2010, borrowers in Georgia who entered foreclosure first defaulted on a credit card on average about 11.5 months earlier. That’s up from just less than 10.5 months in early 2008, though down from just over 12 months in late 2005, according to Equifax.

The issue of strategic default “is not as bad as everybody is talking about,” Afshin Goodarzi, managing director of Equifax Capital Markets, told Trubey.

Also in the AJC:

In other media:

- Henry Unger, The Biz Beat

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6 comments Add your comment

Reeves Carroll

February 25th, 2011
6:49 am

I am greatly concerned about gas price increases which seem to be getting worse. I am retired
but I feel for those out of work and limited income. How can they look for jobs and go for interviews
when they can’t afford the gas. There are 5 foreclosures on our street which is a short street.
The houses are only 8 years old in this subdivision and have decreased in value greatly.
Those in Washington say “the recession is over”. However, things are not better in Georgia.
We have a high unemployment rate and people are still losing their homes.
Thank you.

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GaNative

February 25th, 2011
7:37 am

I think it’s just great the way things are happening. As long as the powers that be continue to bring foreigners into the country on the H-1B Visa Program, Offshore Jobs and keep natural born U.S. Citizens at home things will continue to erode. I had a phone conversation with a recruiter this week. Of course it was with a non English speaking Indian. He had the nerve to tell me that the problem he has with my resume is that I have not worked since December 31, 2009. It took all I could muster to restrain myself from telling him if we sent you guys back to your country many Americans would have jobs. Once people get enough of this, I think the same thing you see happening in the Middle East is going to happen in America.

The Economy

February 25th, 2011
8:05 am

Foreclosures and unemployment will continue to rise, we havent hit bottom yet. Recovery is 3-5yrs away, it will be a new way of living for most in this country. Riots are coming, pick a side.

bad news

February 26th, 2011
7:37 pm

the economy is worse than ever, no matter what the BS is put out by govt economists in DC. There are no good jobs available. I’m walking away from my mortgage in 2 months—my house in dekalb is $70,000 underwater.

Destin Dawg

February 27th, 2011
7:56 am

you need to watch or read.. ” Who Killed the Electric Car “… especially for you folks who travel 60 mi. / day to business or shopping … They destroyed ALL the used electric cars because they don’t need gas , oil, very liitle maintenance.. not PROFITABLE.. Big Oil Co’s bought the new battery Technology and killed it… Car Co’s made it hard to buy one.. . no advertising.. they were great cars !!! it would mean no more foreign oil..